Re-Establishing the Gold Standard

The rising price of gold has been a boon to the gold-buying business, which thrives on the most up-to-the minute fluctuations in valuations of the fresh metal.

Most gold buyers have happily watched as the price of gold has steadily increased over the past years, causing the number of gold-buyers to proliferate.

“Everyone and their mother buys gold,” said Neil, proprietor at on Old York Road, who asked that his surname not be used. “Even jewelry stores now buy gold, which is currently hovering at $1,700 an ounce."

Presumably, the increase in the number of jewelers and gold buyers supports an active gold-selling market. According to Neil, there is always a market for people who are looking to sell gold, especially during the holidays.

“I do well during the holiday season because people want to buy gifts, but since the price of gold is high I have had a steady flow of customers all year long,” he said.

Gold-buying by itself is not a complex process. A seller arrives in the store with a bunch of gold, then the buyer weighs it and offers a price. 

“I usually tell people to go out and get the best price they can, then come to see me,” Neil said, adding that he figures if he pays a little better than the competition, more customers will arrive at his store. "I like to think I give a better price than most."

Neil said that after 31 years in the business, he relies on his experience to evaluate the quality of gold he receives. 

“One time a woman came in with jewelry that was not gold all the way through and I quoted her a price,” he said. “It was a rare instance when I did not use my magnet, which would have detected real gold."

Because of the nature of a gold buyer’s business, Neil said that he has to keep proper records of each transaction and turn them in to the police department every week.

That's a small price to pay to be a safe and reliable business person, Neil said.

"I get a lot of customers by word of mouth," he said.