Thursday, April 21, 2011

$1,500 Gold Inducing A Lot Of...Selling

We've yet to reach the point where the gold bull market has induced a buying frenzy. In fact, as reported by ABC News, the high price is calling forth a lot of selling. Items being sold include gold in teeth.
I've seen them pop the gold right out of their mouth," says Dave Crume, president of the National Pawnbrokers Association and executive vice president of Wichita, Kansas, pawnbroker A-OK Enterprises.

"It's a little awkward," he admits, "but I've see them take out a tooth." More often they bring in family heirlooms they don't want or jewelry they no longer wear. The gold-selling trend, which started picking up steam two years ago, has become only stronger now, as new ways have arisen for customers to unload their gold. It can be sold via mail, the Internet and Tupperware-like "gold parties," such as Premier Gold Parties, where a group of friends meet to sell their gold in a home setting.
It isn't just gold's price that's inducing the selling. With unemployment still high, selling the jewelry (or fillings) is a way to get ready money. Silver is also being sold much more than before.

Such sales will tend to damp gold's rise, but they're not indicative of a bubble - as yet, anyways. People going into hock to buy gold and silver would be.

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