Falling gold prices hit close to home
Tue, 23 Apr 2013 23:10:20 GMT —
Last week, gold took its biggest tumble in three decades, going from $1,500 an ounce to under $1,400 an ounce.
The effects can even be felt by some people in our area just trying to pay some bills, like Coastal Carolina sophomore Jill Dobronsky.
"Rent is due at the end of the month so I need money right now, quick cash, and I had some jewelry that I don't wear so I thought it would be a good idea to bring it in," she explained.
For Dobronsky, the price of gold wasn't something she thought she'd have to worry about going to college, saying it bothers her a lot knowing that it will probably go back up next week.
Latonya Mason, who owns The Gold Stop in Conway said these last few weeks have been really tough on her too, saying if it had gone on like that another week or two, they'd be out of business.
By law, Mason has to hang on to jewelry she buys for seven days. But, as soon as that window closes, she said she usually has to sell off what she has pretty quickly just to stay open and recently, that means selling it for less than she paid for it.
"We have a large family ourselves so we depend on our income a lot to raise them and put them through school," Mason explained.
Financial advisor Joe Taylor explained that with today's prices, the cash for gold business model is tough.
"When the price of gold is steadily going up, it's easy for her to make money, when the price of gold changes dramatically, it takes that kind of middle man out of the system," he said.
But gold has started to rebound slightly giving Mason a little hope.
"We're going to be able to eat this week but hopefully it will keep creeping back up."
Taylor adds that he expects a lot of cash for gold businesses to close their doors over the next few years.