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At the largest jewelry hub in the U.S., Alberto Hernandez recently started his machine and waited for it to glow a vivid orange before feeding it a mix of rings, earrings, and necklaces weighing nearly as much as a bar of soap—just under 100 grams or 3.2 troy ounces.
Moments later, the molten metal settled in a rectangular mold about the size of a woman’s shoe. An X-ray analysis revealed the mixture was 56.5% gold, giving it a value of $177,000 based on the gold market price that day.
With gold prices hitting record highs amid global economic concerns, vast sums of gold—worth hundreds of thousands of dollars—pass through the doors of downtown Los Angeles' St. Vincent Jewelry Center daily.
Many of the center’s 500 independently operated businesses, including jewelers, refiners, and assayers, report unprecedented customer traffic.
“We’re seeing a lot of rappers melting down their large pieces right now,” said Sabashden Hernandez, Alberto’s nephew and a staff member at A&M Precious Metals. “New customers are showing up with their grandfather’s old jewelry and just melting it all down.”
The surge in gold activity follows unpredictable tariff announcements by President Donald Trump, which have shaken markets and stirred fears of inflation.
As a result, people across the U.S. are rushing to sell or melt their old jewelry for fast cash, including intermediaries such as pawn shop operators. Meanwhile, others believe that gold offers more stability than the turbulent stock market and are buying it quickly.
Olivia Kazanjian, a jeweler in Los Angeles, said people are even parting with treasured family keepsakes.
“They’re bringing in items engraved with wedding dates and heirlooms from the 1800s,” Kazanjian shared.
She recently bought a 14-karat gold bracelet with intricate blue enamel—a piece that could be reworked into a brooch—for $3,200, based on its gold content measured in troy ounces (31 grams each).
However, Kazanjian doesn’t intend to melt it. She explained that its craftsmanship and historical value are far greater.
“It’s absolutely beautiful … craftsmanship like that is rare nowadays,” she said, adding that she’s managed to convince some clients not to destroy their items. “It’s part of history—and if you inherit it, it’s part of your family, too.”
On the retail side, dealers offering gold bars and bullion are also scrambling to meet demand.
“Items arrive and leave immediately,” said Edwin Feijoo, owner of Stefko Cash for Gold in Pennsylvania, who receives gold shipments from sellers nationwide. “Everyone’s extremely busy right now.”
Still, the boom hasn't benefited all.
Jewelers who import their merchandise from places like Italy, Turkey, and China are feeling the strain of high gold costs and additional tariffs, which are squeezing profit margins and lowering customer interest.
“Our profits are already razor thin,” said Puzant Berberian, whose family has operated V&P Jewelry inside St. Vincent since 1983. He recently had to pay an extra $16,000 for an overseas shipment.
Buyers, too, are shocked by rising prices. A thick 14-karat bracelet weighing 10 grams (0.32 troy ounces) that sold for around $600 last year now fetches nearly $900, Berberian said.
Some predict the trend will continue for both consumers and sellers.
According to Sam Nguyen, who runs Newport Gold Post Inc.—a St. Vincent-based business dealing in gold and precious metals for five years—many bullion buyers believe prices will climb even higher. While gold has cooled slightly from its $3,500 peak per troy ounce, Nguyen expects it could hit $4,000 to $5,000 by the end of the year.
Jeff Clark shares that outlook. The founder of The Gold Advisor, which gives investment guidance, said he wouldn’t be surprised to see prices keep rising, as gold is viewed as a safe investment during economic uncertainty.
“History proves it has surged far higher before,” Clark said, recalling the 1970s boom when gold prices grew 17 times amid rampant inflation. “If widespread fear and doubt persist, prices will likely keep rising.”