Olympic metal and safe haven: gold has had a great summer. The price of the most precious metal has been rising for several months due to a combination of several factors, including massive purchases by central banks, very dynamic Chinese demand and geopolitical conflicts that are pushing investors around the world to turn to bullion.
Over the first eight months, the price of gold jumped from $2,043 an ounce on January 2 to $2,500 in recent days, a 23% increase. By comparison, the S&P 500, an index of the highest-rated U.S. stocks, rose 20% over the same period. The French stock market stagnated, down less than 1% for the CAC 40.
Investors are therefore increasingly ready to buy, as Laurent Schwartz, founder of the Comptoir national de l’or, a specialist in buying and reselling, reports.
So is now the best time to resell your jewellery? The very high prices allow us to expect significant capital gains. “It is obviously a good time, we cannot go wrong with such a high price: if we want to get rid of a property, it is ideal; if not, we can keep it, it will always have an investment value,” Laurent Schwartz adds.
Melted and purified gold
In fact, selling jewellery is profitable in two ways for those involved in the purchase: first, it can be valued as such, after being appraised, and then resold. Brands such as Rivluxe, for example, have specialised in the resale of second-hand luxury jewellery items.
Alternatively, a piece of jewellery with less craftsmanship or value can be melted down to recover pure gold. Laurent Schwartz describes the operation: “When the jewellery is removed, it is returned to the foundries and then to the refining plants. We create blocks of different qualities, alloys. Then comes the possible purification, to obtain pure 24-carat gold.”
The good news is that gold prices largely determine the buyback price, even when repurchase margins and processing fees are included.
Some rules to apply
However, there are some rules to follow if you want to avoid problems. Laurent Schwartz advises comparing buyback offers by trying several competing stores if possible. “You have to go to recognised professionals: the market is still very fragmented. Independents do a very good job, but others don’t.”
It is also necessary to check the price of gold in advance, to see if it is reflected in the price offered by the store.
Finally, forget about the Internet: online sales are still complicated, with dangerous deliveries by La Poste. “Online, it is impossible to discuss the price: in the shop you can always go out,” explains the president of the Comptoir national de l’or.
Source: BFM TV
