Gold Rush

The effects of record high gold prices will soon hit consumers and buyers alike along Connecticut’s "gold" coast.

A weak dollar and rising oil prices catapulted gold catapulted past $1,500 an ounce yesterday on the New York Mercantile Exchange. That’s good news for precious metals traders and people who want to sell jewelry, but bad news for consumers. Because the price of jewelry rising just in time for Mother’s Day, graduations, and June weddings.

“It’s remarkable,” Terry Betteridge of in Greenwich said. “There will be a modest affect, but it’s very difficult to predict right now. Clearly customers of ours are concerned.”

Anyone considering buying a Swiss-made watch can expect the price to jump a bit, Betteridge said. For example, a $10,000 Rolex watch might only contain a few hundred dollars worth of gold, but it’ll be enough for the watch’s price to increase. Still there’s more wiggle room when it comes to setting the price.

“On the other hand with a gold wedding ring you’re stuck with what the market sets,” Betteridge said, who also owns stores in Palm Beach, Fla., Vail Solaris and Vail Village, Colo.

Investors consider gold a safe haven for their money during fiscal and political upheaval. But after Standard & Poor’s downgraded its outlook for U.S. long-term debt from “stable” to “negative” investors ran to gold in droves.

In Norwalk, Jeff Roseman, owner of , said a little perspective is needed.

“I’m 52 and I’ve lived this before,” said Roseman, who also owns a . “Gold was stagnant at $300 and then it started creeping up to $600. And I saw the same frenzy – from jewelers. Because for consumers buying something, say a yellow gold band, it’s not something they are purchasing hourly or weekly.”

So yes, he said, it’s more expensive than it was a year ago, but it’s no different than other consumer goods.

If a couple shopped for wedding bands last year they would notice a price increase. But compared to the overall cost of a wedding, it’s four meals with friends, Roseman said.

Where it gets tricky is when jewelers start buying.

“As we get into the buying season and the trade shows I have to make some decisions,” Roseman said. “Typically I bought for Christmas in June. Now I’ll wait to do it a little closer to the holiday so I don’t speculate. My buying season will be June and October this year.”

The next large trade show is in Hong Kong  in May. Howard Robinson, owner of Wilton Jewelers, expects prices to rise at the wholesale level once again. 

The record-setting price comes from a weaker U.S. dollar. That coupled with rising oil prices as well inflation in emerging economies such as China and India sent investors running to gold in droves. Inflation is also becoming a concern in Europe.

"In my opinion it's getting crazy like the oil," Robinson said. "It's being speculated. You just have to ride it out."

The high price also translates into a gold rush of sorts for people consider selling old or unwanted jewelry.

“The more it’s in the press the more people want to sell it,” Betteridge said. “When I buy junk jewelry I feel like a butcher, I throw it on a scale and weigh it and then I just melt it.”

But for antique dealers it's a different story than pawnshops.

At in Westport people do come into sell jewelry, but mostly estate jewelry.

“It’s a part of my business, but not the whole thing. I deal more in estate jewelry and 1950s and modern pieces,” said Glen Leroux, the shop's owner. “It’s just not going to affect me much.”

However, area jewelers cautioned anyone seeking to sell jewelry not to turn to the nearest storefront.

“The ‘We Buy Gold’ people will give you maybe seven-tenths of the market value,” Betteridge said.

Both Betteridge and Roseman said they pay sellers market value.

In addition, Roseman said David Harvey Jewelers accepts gold in payment for things such as watch repairs.

“We’ll pay 100 percent the value of the gold,” he said. “Whether you pay me in cash, coin, or gold makes no difference.”

(Editor's note: This article has been corrected to reflect accurately Terry Betteridge's name.)