With gold prices hitting record highs, jewelry owners are cashing in by melting old pieces into cash.
For weeks, people have been scouring their homes and opening safes to find vintage necklaces, family heirlooms, and other gold jewelry. They are eager to melt these items down for cash while gold prices are high.
“It happens with every gold spike,” said Jeff Clark, market analyst and founder of TheGoldAdvisor.com. “If you’ve got old gold jewelry, it’s basically free money.”
Gold prices hit a record $3,357 per ounce last Thursday, marking a 27% increase since the start of 2025. The rise is linked to geopolitical tensions, trade disruptions, and growing demand from central banks.
Gold is often viewed as a safe investment, especially during economic uncertainty. It is seen as a hedge against inflation and stock market fluctuations. As demand for gold rises, it can be lucrative for owners to sell items made from the metal.
“People are asking, ‘If I have some gold jewelry from my grandparents, can I get some money for it?’” said Alex Arakeloglu, a sales associate at Capri Jewelry in Los Angeles. “I hear this a lot in the Jewelry District.”
Surge in Gold Sellers Boosts Local Jewelers
The influx of customers eager to sell their gold has provided a boost to independent jewelers. These businesses, already facing rising wholesale prices for new jewelry, are benefiting from the gold rush. However, many are concerned that tariffs on imported precious metals, especially from former President Trump’s policies, may drive costs even higher.
On a recent Monday afternoon, Rosie Juda visited her jeweler’s Los Angeles studio with several bags of gold jewelry, some of which had been passed down through her family. Her goal was to melt down the pieces and take advantage of the rising prices.
Among the items she brought were rings with blue and red gemstones, an inscribed cigarette case, and even a whimsical clown figurine with a wide grin. Olivia Kazanjian, owner of Jewelry by Olivia K, examined each piece with a jeweler’s loupe. She confirmed that some of the items were good investments.
Kazanjian cautioned, however, that not all jewelry is worth melting. “Antique pieces are often too valuable for melting. You’ll never find that craftsmanship again,” she explained.
Turning Jewelry Into Cash
Juda, a retired set decorator, is ready to sell her jewelry to help pay for her daughters’ college tuition. “Priorities change,” she said. “Do I want all this stuff sitting in a safety deposit box?”
During their two-hour session, Kazanjian and Juda separated nearly 40 pieces of jewelry into different piles. Some of the rarer items will be kept as-is, while others will be redesigned.
Kazanjian offered Juda $9,500 for the gold jewelry she planned to melt. The price was based on the weight and purity of the gold, with deductions for melting and processing fees. Kazanjian will take the pieces to a refinery in Los Angeles’ Jewelry District to be melted down.
Refining and Security Concerns
Several businesses in the Jewelry District specialize in melting gold, including Elemetal, one of the largest refiners in the country. Elemetal’s facilities separate impurities from scrap jewelry and bullion to refine the gold.
But as the gold market has surged, jewelers are taking extra security measures. Recently, a downtown Los Angeles jewelry store was the victim of a high-profile heist. Thieves tunneled into the store, stealing millions of dollars worth of gold and jewels. The FBI and local police are investigating the burglary, which resulted in an estimated $10 million in losses.
Will You Get Rich?
Despite the current rush, Clark, the gold analyst, said that most jewelry owners won’t get rich by selling their old pieces. “You probably won’t get rich off of it,” he noted. During a previous gold spike, some people even sought permission from morticians to extract gold from deceased relatives.
“People try to sell anything with gold in it,” he added. “Some morgues will allow it.”
As long as gold prices remain high, expect more people to raid their jewelry boxes, hoping to cash in on this temporary windfall.
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