Our recent trip to Europe highlighted one thing. The dollar sucks. It becomes less abstract and more real when you have to shell out $80 for a very average pasta dinner. Since most major commodities are sold in dollars it also means that things like gas and gold become that much more expensive.The press has caught on and I recently watched some special on the local news about "Gold parties" where people gather together and hawk their old jewelry for cash. With a recession looming, with Gold prices at $1,000/ounce and Platinum at $2,000/ounce this has created somewhat of another gold rush. The big difference being that instead of combing the foothills above Sutters Mill we are all secretly scouring through our spouses jewelry in search of that pair of earrings that they really didn't like.
I took an old platinum/gold ring and decided to play the game....daddy needed a new blazer from Banana Republic. I took my act over to a local jewelry/hobby store in the area. The type of place that smelt of many years and poor taste. The trip was memorable.
I was greeted by a large cage. I buzzed in the door and entered the cage. From there someone on the inside buzzed me through the next door. The place was a veritable low budget fortress with bars and security cameras protecting the small cache of 18th Century coins, baseball cards, and tasteless jewelry. It was also exceptionally crowded and I was given a number to wait my turn. I perused the collection of old European coins and eavesdropped in on some conversations.
To my left was an elderly lady with a shoebox. She poured it out in front of the store owner who was wearing loupe and trying to find value in her dusty treasure trove. She went through each piece and after explaining its history (things like 'this was given to me by an ex-husband after I discovered that had been cheating on me') passed it on to the owner. He examined it for a few seconds, weighed it, and then pulled out his calculator to determine what he would offer. This followed with each piece. She ended up walking away with $400 for troubles and probably took her new wad of cash directly over to the nearest bingo table.
I observed this event with a few other people. I saw a kid and a mom, probably amateur coin collectors, try to trade some coins. I saw a middle aged man and his watch. It was all quite interesting.
Finally my turn arrived. My situation was a little more complicated because he also had to calculate how much platinum was involved. He gave me a fair quote but I decided that I would get a second quote elsewhere or at least to try and sell it directly without a middle man. I went home and got one of those free "gold kits" you see on TV and am using that route to squeeze an extra $100 out of the ring.
The whole experience was quite interesting. I was able to see how inventive and desperate people can be when it comes to making ends meet. I was also able to witness how broad economic happenings can affect live on 'main street.'
