This article first appeared in the St. Louis Beacon, March 25, 2009 - Got gold?
A herringbone chain that hasn't draped anyone's neck since 1989, perhaps. Or the wedding ring that belonged to your ex. Maybe a watch that no longer works, but you've held onto because it's 12K gold, for gosh sakes.
At Amy Blickensderfer's house in Chesterfield on a recent Sunday afternoon, guests could buy new fashion jewelry -- and sell their old treasures to a gold buyer who paid cash on the spot.
It was a friendly, social affair, with the half-dozen guests gathered around the dining room table, chatting and sipping wine as they browsed through a glittery selection of jewelry brought by Donnell Probst, a Lia Sophia representative. In the kitchen, Matt McCormick of Missouri Coin Co. was set up to buy their old gold.
Blickensderfer, who sold about $300 worth of out-of-style earrings, bracelets and necklaces, said she would have never mailed or taken the jewelry to a gold dealer.
"There's no way I would have ever mailed my jewelry in an envelope. Who would do that? But for me this was easy; they came to my home,'' she said.
A national trend, St. Louis style
Forget Tupperware and scented candles. They're so pre-recession.
Gold parties -- where guests bring their old jewelry to sell to gold buyers -- are a national trend that began in regions of the country, such as Michigan, California and Florida, places that have been hard hit by the recession.
In recent weeks, McCormick has held about 10 gold parties in St. Louis and has teamed with Probst on several occasions. Credit for the party combo goes to a woman who wanted to have a jewelry party and a gold party -- and decided to invite them together.
For Blickensderfer, it was a matter of trust. She had previously hosted Lia Sophia parties and thought she could trust Probst to bring a reputable gold buyer.
Probst says teaming up with McCormick has been good for her jewelry sales.
"It seems to take the pressure off the guests," she said. "They don't feel obligated to use their credit cards. They can shop a little more freely. Especially with the economy the way it is, they don't have to come with as much of a budget restriction."
Andrea Seavey was the day's big seller. She cashed in $403 worth of gold and silver, some from a collection passed down by her mother that had no sentimental value.
"I'm having a great time,'' Seavey said. "I'm probably going to spend $100 or so, but I'll be in the plus column. I think my husband would be a little disappointed if I didn't bring some home.''
A way of reaching new clients
McCormick said he buys, on average, $3,000 worth of gold at the parties and gives the hostess a 10 percent cut. He brings the wine -- and his professional scale and calculator, basing his price on that day's gold prices.
"This is unwanted jewelry,'' McCormick said. "It will go to a refinery and be melted down and refined to pure gold and then resold to jewelers and the process starts over.''
McCormick said the parties are a way of reaching clients who would not come to his store to sell their gold. People are thinking creatively, he said. A church in Troy, Ill., for example, is arranging a gold party as a fundraiser.
"Most of the people who come to the parties, they're just doing it because it's convenient; they're just having a couple of drinks with their friends,'' he said. "At our store we have people who really do need the money. I had somebody tell me last week, 'Thank you for paying me for this. I can now turn my electric back on.' ''
McCormick's father, Dennis McCormick, the founder of Missouri Coin Co., has 35 years of experience in the gold business and understands its cyclical nature.
In 1999, people bought gold because they worried about Y2K, Dennis McCormick said. In 2001, they started worrying about the national deficit -- and Sept. 11 spurred more interest.
Investors today are buying gold coins and gold bars, while other people are emptying out their jewelry boxes.
"We have people needing money who are taking advantage of the high prices,'' Dennis McCormick said. "We see a lot of people who are desperate. It began picking up a year ago, and it's really picked up since the fall, as people are losing their jobs.''
Be Careful when Selling Your Gold
Scott Thomas, a trade practice consultant with the St. Louis Better Business Bureau, cautions consumers to do their homework before selling unwanted gold jewelry:
Mailing Jewelry to Gold Buyers
Although these ads are blanketing the airwaves, Thomas warns that mailing gold to a buyer is the "least appealing" option and the method that requires the most consumer caution.
"You're putting yourself at a big risk,'' he said."What are your chances of getting your gold back if you don't like the amount of money they send to you -- or if you don't receive anything at all from them. It's going to be a big hassle to hunt them down and try to get the gold back that you shipped away.''
Know Current Gold Prices and Deal Locally
"If you're going to sell gold, the best bet is to find local, reputable jewelers and do a little research before you go to sell your jewelry,'' Thomas said. "Find out what gold is worth currently.''
Get an Appraisal or a Second Opinion
"It couldn't hurt to have an appraisal if you have some expensive jewelry -- so you know what your jewelry is worth. You are probably not going to get what it was appraised for, but there's less chance that you're going to get ripped off,'' he said. "Most of us aren't jewelry experts. Even if we look online and find the price of gold that doesn't guarantee we'll get the best price. They could offer us the worst deal in the world and we'd never know.''
It's Just Scrap Metal to Buyers
Thomas said that when determining value, remember that buyers are paying just for the gold content -- not sentimental value. It might be great-grandpa's watch to you, but it's scrap jewelry to a dealer.
Websites to check out: Better Business Bureau| Jewelers Vigilance Committee| Missouri attorney general
