Gold rush fever sweeps the country as the recession bites

THE lobby at the Shandon Court hotel is relatively busy at 11am on Friday morning as guests line up at the front desk to check out and children chase each other down the stairs.

In a room off the main hallway, a glass door has been covered up with posters and a sign asks the prospective customer to “knock” before entering.

All morning long, people have been wandering in and out of the room: a woman in her early 30s with three children, a couple of pleased-looking women in their 60s or 70s, a jittery-looking boy in his early 20s and a man in his 50s. Chairs are lined up outside the door so customers can wait their turn.

A poster in the hallway reads ‘Cash for Gold,’ proclaiming that even a single earring will be bought by the company.

The two men inside the hotel who are weighing and evaluating the gold don’t want to talk to journalists.

They’ve already told me over the phone not to bother coming up. When I enter the room and introduce myself, they tell me their reticence is based on the potential security risk.

“We don’t want to draw attention to ourselves or reveal our identity. Also, the people who come here want privacy. Confidentiality is guaranteed here. Your neighbour could be here and she won’t want you to know she’s here,” one says.

They refuse to give me details on how much money they will most likely pay out today or how their prices compare to the jewellery stores. They’re in the business for over a year now, they say, but their boss has been doing it much longer.

All the gold they buy is sent to Britain and further afield where it’s melted down to be re-cast. The collapse of the financial markets has made the gold markets as hot as Ballsbridge property four years ago. Gold has risen in value from $280 for a Troy ounce in January 2002 to its current high of near $1,000.

Apart from the nervous-looking boy in his lowered baseball cap, none of the clientele going to ‘Cash for Gold’ look particularly vulnerable.

Melissa Meth from Carrigaline is delighted with the €160 in cash that she’s walking away with. She sold a couple of gold rings, two sets of earrings, a gold chain and a charm bracelet.

“It was all stuff that I got as presents, a lot from South Africa and that I just don’t wear,” she said. “The whole process seemed fine. The two men weighed it and examined it and asked for identification which I gave them.”

“My husband will be 30 shortly and this money will go towards his present and a few drinks on his birthday night. I’m delighted to be honest. My mum told me about it. I’d seen the ads for people to send off gold in envelopes before but I couldn’t imagine posting off your jewellery to god knows where.”

Mary Crowley lives nearby. She went home with an extra €300 in her pocket having brought over the broken jewellery that has lain at the end of her jewellery box for years. “There was a broken signet ring; a diamond pendant; a ring from Tunisia and a gate bracelet. I had more bracelets with broken clasps and about three or four chains which had just lain around for years,” she said.

Cash for Gold travels to hotels all around the country, advertising on local radio and newspapers. It’s exploiting the gold fever that has been sweeping across the States for a number of years now, hitting credit-crunched Ireland in the past year. Another company, Goldparty.ie is urging friends to rummage around their sofa and in their jewellery boxes and hold a party where a goldparty.ie agent will evaluate their loot. And, Galway-based company, TheGoldRetreiver.com has joined the booming postal business in scrap gold which has seen similar US operations become amongst the fastest growing companies of 2009.

In Cork, Frances Lynch was well known for her antique jewellery shops, Savoy Antiques and Victoria Antiques. Two weeks ago, she diversified into cash for gold and is selling gold bullion at her Victoria Gold Bullion Shop.

“The price is so high that there is great demand. They’re coming in to buy and sell from all walks of life. Many people are seeing gold sovereigns and half sovereigns as good investments and there is a lot of scrap gold being brought in. People are also buying gold coins, bullion whatever,” she said.

Director of TheGoldRetreiver.com, Greg Heaslip holds a PhD in Material Science and is an expert in the field of metals analysis and gold. His company accepts old and broken jewellery which they then value, sending back a cheque if the customer accepts the valuation.

“With the steep rise in the value of gold it is no surprise we have seen a number of companies emerge urging people to search out gold items they may have for immediate evaluation. I believe the price of gold will continue to rise. Nevertheless, it has been rising for the past 10 years or so and just like stocks or the property market there is always a risk of it tumbling. Therefore, I urge those interested in selling their gold not to wait and then regret not selling”.