One of the most popular opportunities for people to sell gold to companies is through gold buying events, such as one hosted by The Gold Refinery at the Kishwaukee Community Hospital. Events such as these attract many Americans, who prefer to sell their unwanted gold at prices higher than those offered by pawnshops. The Gold Refinery, like other businesses engaged in buying gold, accept gold jewelry and gold coins. Most of them will even accept dental fillings. The gold items are later recycled and turned into new jewelry, among other things.
Gold recycling is relatively new in the U.S. and other western countries, although it has been practiced in places like the Middle East and India. According to the World Gold Council, gold prices are soaring because of the global demand for the metal, thanks to increasing consumer demand in India and China and the use of gold components in electronics. This year, gold prices peaked at over $1,400 per ounce, rising 22%.
Belvidere Collectible Coins' Pat Delaney reports that sellers have increased in number in the Belvedere and Genoa stores during the last three years. He believes that people are selling because of the current high prices and because they need access to quick cash. To Delaney, it's the good price working with the bad economy.
To Stephen Karlson, however, there's a far deeper reason for the drive to buy and sell gold. Karlson, who teaches economics at the Northern Illinois University, says that gold prices are affected by the fact that gold is a limited resource. People also prefer to use gold as a hedge against inflation because they are just not that confident about the value of paper money.
Although Karlson thinks that there is nothing wrong about people selling gold to take advantage of the prices, he warns about the possibility that gold buyers could be putting too much money on what is known as a 'speculative bubble'. To him, there just is no way anyone could predict when the bubble will burst.