At the St. Vincent Jewelry Center in downtown Los Angeles, one of the largest jewelry hubs in the United States, business has been booming as gold prices surge to new record highs. On a recent day, Alberto Hernandez fired up his machine, heating it to a glowing orange before melting down an assortment of jewelry, including rings, earrings, and necklaces weighing just under 100 grams. The molten metal was poured into a rectangular cast and, after cooling, was analyzed by an X-ray machine, revealing it was 56.5% gold and valued at $177,000 based on the day’s market price.
This spike in gold prices, driven by global economic uncertainty, has caused hundreds of thousands of dollars’ worth of gold to flow through the jewelry center’s doors daily. The center, which houses 500 independent tenants including jewelers, gold refiners, and assayers, is experiencing an influx of customers unlike any in recent memory.
According to Sabashden Hernandez, a worker at A&M Precious Metals and nephew of Alberto Hernandez, many new customers are bringing in gold items to melt down. “Right now, we’re seeing a lot of rappers and people melting their big pieces,” he said. “We’re getting a lot of new customers who are just getting all of their grandfather’s stuff, melting it down pretty much.”
The current surge in gold sales coincides with volatile market conditions, exacerbated by fluctuating tariff announcements from President Donald Trump. Amid fears of inflation and market instability, many individuals are turning to gold as a safer investment, leading to both an increase in gold sales and purchases.
Jewelers like Olivia Kazanjian have witnessed a rise in people melting down valuable family heirlooms. “They’re melting things with their family’s wedding dates and items from the 1800s,” said Kazanjian. One such item, a 14-karat gold woven bracelet, was sold to Kazanjian for $3,200. Although the gold could have been melted down, Kazanjian opted to keep the piece intact due to its artistic and historical value. “It’s just stunning,” she said. “If you’re lucky enough to inherit it, it’s a piece of your family.”
As the gold rush continues, businesses on both the buying and selling ends are struggling to keep up with demand. Edwin Feijoo, owner of Stefko Cash for Gold in Pennsylvania, noted that shipments of gold are coming in quickly and selling just as fast. “Stuff comes in and it goes right out,” Feijoo said.
However, not all jewelers are benefiting from the gold rush. For some, the rising prices and added tariffs have cut into profit margins, particularly those who import their goods from abroad. Puzant Berberian, owner of V&P Jewelry at St. Vincent, shared that his family has struggled with razor-thin profit margins. “I recently paid an extra $16,000 on a package from overseas,” Berberian said, pointing to the challenges caused by the combination of high gold prices and additional tariffs.
Customers are also feeling the pinch, with many facing “sticker shock” as prices for gold jewelry rise. A chunky 14-karat gold bracelet, which may have sold for around $600 last year, is now priced closer to $900, according to Berberian.
The rising gold prices have fueled speculation that they could continue to climb. Sam Nguyen of Newport Gold Post Inc., which buys and sells precious metals, believes gold could reach $4,000 to $5,000 per ounce by the end of the year. Similarly, Jeff Clark, founder of The Gold Advisor, emphasized gold’s role as a safe haven during times of economic uncertainty. “History shows it has gone much higher in the past,” Clark said, referencing the 1970s gold boom driven by inflation. “If the fear and uncertainty continues, the prices are going to keep going up.”
As the future of gold remains uncertain, both buyers and sellers are watching closely, hoping to make the most of the current market conditions.
