Consumers sell off jewelry after gold prices jump to $3,400

Tobina Kahn, president of US jewelry company House of Kahn Estate Jewelers, told Kitco News that the industry is now experiencing a rush of customers looking to sell their jewelry.

According to Kahn, some consumers were hesitant to sell jewelry when gold prices were below $3,000 an ounce. However, the recent spike in the precious metal's cost has changed the market environment. As Kahn notes, current prices are outweighing even sentimental feelings—some consumers are selling family heirloom memorabilia.

The increase in secondhand jewelry recycling activity in the US comes amid record gold prices, which have shown an increase of nearly 30% this year and now exceed $3,400 an ounce.

Kahn said that most of her company's customers do not expect a complete collapse of the United States economy. However, many consumers perceive the rise in gold prices as compensation for the decline in stock prices, which has hit pension funds heavily.

According to Kahn, the US Federal Reserve will eventually lower interest rates to support the country's economy. This will make gold even more attractive due to lower opportunity costs.