KIOSKS HAVE sprung up in shopping malls all over the country offering to buy your unwanted gold as US dollar prices soar, but they may not always offer the best deal for those tempted to sell.
GoldBuyers New Zealand, a Kiwi company part-owned by Aussie firm GoldBuyers, has opened kiosks in 14 malls throughout the country with a further five about to open, and is seeking to take advantage of a big spike in the gold price which is tempting many people to cash up their old gold.
Gold prices have spiked to $US1112 ($1587) a troy ounce from around $US850 ($1545) a year ago as speculators and investors have sold up shares and other assets to buy gold, which has the reputation as a safe haven in periods of financial crisis.
That has suddenly made it appear a valuable commodity and enabled gold buyers to offer more attractive prices for unwanted family jewellery.
But those selling their gold need to realise the cost of recycling their gold, and the margin the gold-buyer takes, means they are likely to get less than half the value of the gold content of their unwanted bracelets, rings, earrings and necklaces.
And, judging by a mystery shop by the Sunday Star-Times, the mall is one of the worst places to go to sell gold…
The article also mentions that the Goldbuyers company is looking for “reps to hold goldbuying parties in their homes in return for a slice of the profits.”
Some might argue that this is evidence of a gold bubble forming.However we would counter that to the contrary this shows average Joe or Joanne are more likely sellers of gold than buyers at current prices.
When kiosks selling gold coins to the masses arrive in Westfield Shopping Malls then we’ll take notice and that may be the time to consider gold might be topping.Until then holders rather than sellers we will be.
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