At the heart of the U.S. jewelry trade, business is booming. Inside the St. Vincent Jewelry Center in downtown Los Angeles, jewelers are seeing a surge in demand as economic uncertainty pushes gold prices to new highs.
One recent day, jeweler Alberto Hernandez melted nearly 100 grams of gold jewelry—about the weight of a bar of soap—into a small metal bar. The molten mixture, heated until it glowed orange, was poured into a shoe-sized mold and later tested to contain 56.5% gold. With prices at that day’s rate, the bar was worth around $177,000.
Gold prices have been climbing steadily amid fears of a possible recession and unstable financial markets. In response, people across the country are rushing to sell, melt, or invest in gold.
At the St. Vincent Jewelry Center, which houses about 500 independent businesses, including gold refiners and jewelers, the rush is clear.
“We’re seeing a lot of rappers melting down their big pieces,” said Sabashden Hernandez, who works at A&M Precious Metals with his uncle Alberto. “We also have new customers coming in with their grandfather’s old jewelry, just melting it down.”
Much of this activity is fueled by global economic tension and uncertainty over U.S. trade policy. As the stock market wobbles and inflation fears rise, many Americans are choosing gold as a safer place for their money.
Los Angeles jeweler Olivia Kazanjian said some customers are even parting with family heirlooms.
“They’re melting things with their family’s wedding dates, and even items from the 1800s,” Kazanjian said.
One client sold her a 14-karat gold bracelet with delicate blue enamel. It could be turned into a brooch. The gold content alone was worth $3,200, based on troy ounces—a precious metal unit equal to about 31 grams. But Kazanjian said the item’s true value was much higher due to its craftsmanship.
“It’s stunning,” she said. “You don’t see that kind of work anymore. Sometimes I convince customers not to melt pieces like that. It’s not just gold—it’s a part of your family’s story.”
Other businesses are also trying to keep up with the surge in demand. Edwin Feijoo, owner of Stefko Cash for Gold in Pennsylvania, said he’s been overwhelmed by gold shipments from customers all over the country.
“Stuff comes in and it goes right out,” Feijoo said. “Everybody’s busy right now.”
However, not all jewelers are benefiting. Some who rely on imported products—from Italy, Turkey, or China—say the high gold prices and additional tariffs are hurting their business.
“Our profit margins are razor thin,” said Puzant Berberian, whose family runs V&P Jewelry at St. Vincent. He recently paid $16,000 more on one overseas shipment. Customers, too, are feeling the squeeze.
“People are shocked,” Berberian said. “Last year, a 14-karat bracelet weighing 10 grams might have cost $600. Now, it’s closer to $900.”
Still, many consumers are betting that gold prices will keep rising.
Sam Nguyen, who runs Newport Gold Post Inc. at St. Vincent, said his clients believe gold is a good investment. Though prices have dipped from a recent high of $3,500 per troy ounce, he predicts they could climb to $4,000 or even $5,000 by the end of the year.
Jeff Clark, founder of investment site The Gold Advisor, agrees. He said gold tends to do well in times of economic fear.
“If the anxiety continues,” Clark said, “gold prices will likely keep going up.”
He pointed to the 1970s, when gold rose dramatically during a time of high inflation. “Gold went up 17 times during that period,” Clark said. “It’s happened before. It could happen again.”
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