BILOXI — Gold and silver have more than their usual glimmer these days, as prices for precious metals skyrocket and casual investors increasingly are buying coins.
A few weeks ago, gold was trading at $1,000 an ounce, said Eric King, who works at Gregg’s Coins on Pass Road in Biloxi. Gold was $1,365 an ounce Friday after reaching a high of $1,422.
Silver has gone from $18 to $29.30 an ounce just within the last month.
“It’s crazy,” he said.
Though the price spike brings a big check for those selling their old jewelry, it adds to the cost of dental fillings, a diamond engagement ring and electronics that use precious metals.
“The people who are broke are selling,” King said. He’s paying about $400 an ounce for 10-carat gold, $600 an ounce for 14-carat and $800 for 18-carat, and those prices change daily.
Those who are buying gold and silver coins are scared about the value of the dollar, he said. They started pulling some of their money out of the stock market when their retirement accounts began shrinking, and put it into coins they can hold in their hand, he said.
Mostly they are buying an ounce of silver or a quarter- or half-ounce gold coin they can use to buy groceries and other supplies if necessary. Gold and silver are the one world currency that has held up for more than 2,000 years, he said. In the year and a half since David Watson of Biloxi started is buying silver coins for his retirement, the price has doubled from $14 to $29 an ounce.
“I think this is the most safe investment you can make,” he said. “Silver’s my thing. Silver is used in so many things,” he said, including computers for the burgeoning worldwide market. “Gold’s not.”
At Haney’s Pawn Shop on Central Avenue in D’Iberville, manager Buddy Evans said people are selling their old, broken and outdated gold jewelry to pay the bills.
“The price of gold is up and the economy is down,” he said. He’s worked at the shop for more than 20 years and said the price of platinum fluctuates but other metals follow the price of gold. “Until the economy gets better I expect to see gold prices high,” he said,
King said he agrees with many economists who predict the spike will continue. He also knows at any point the price could fall. As a dealer, he’s paying $13 to $20 each for old silver dollars, but he advises people to hold onto them.
Gail Pav at Pav & Broome Jewelry in Gulfport said customers are still buying jewelry, and selling old rings and silverware.
“We’ve got that trust factor that we’ve build for the last 30 years in the community,” she said. “We’re writing six to eight checks a day.”
For those buying fine jewelry for Christmas, she said diamond stud earrings have very little metal and haven’t increased in price like gold chains, heavy tennis bracelets and jewelry repairs.
A $3,000 diamond engagement ring will be about $80 more this year and Pav said their designers tweaked the custom jewelry to use less metal and keep costs in line.
There are alternatives, she said. “When gold is up — buy diamonds.”
