LOUISVILLE, Ky. (WHAS11)- Gold is now selling for $1,600 an ounce, and many people are turning their jewelry into cash.
For some people, it is a matter of survival. For others, they just want something new.
The value of gold has jumped $100 in just two months, partly because of fear over the United States’ debt, and gold is seen as being a safe investment.
People are cashing in their gold at fine stores and pawn shops.
It is a modern day gold rush.
Shirley Brooks hopes the skyrocketing value of gold, at $1,600 an ounce, will help pay for some of her family's steep medical bills.
"It's going to be a catastrophe,” said Brooks. “I have to pay the doctor and hospital and all out of my pocket."
The family filled two Ziploc bags with decades-old family gold just lying around the house, and took it to the popular pawn shop Little John’s, popularly known from their commercials.
"You can take this money right now and spend it," said John Tan, owner of Little John’s.
Little John's Store at 4th and Central streets helps more than 100 customers a day.
Customers made cash from their old gold jewelry. For a clump of gold necklaces, one customer walked away with $116. For $33, Tan took a gold necklace piece that had “Mom” transcribed in it.
How much would a customer gain from trading in a gold ring?
"If it was 14-carat, we would have paid like $50; 18-carat about $81. If it was a pure gold band like in Asia it would've been $160," said Tan.
Brooks talks to her granddaughter and signs on the dotted line.
So how did they do?
“We made $86. Not bad, considering it was gold we didn’t want and would’ve thrown away,” said Brooks.
Fine stores like Davis Jewelers on Forest Green Boulevard also pay money for gold.
"It's based on weight of gold. So it really depends on what they bring in,” said Ashley Davis from Davis Jewelers. “If they bring lightweight gold earrings or rings, it depends. It could be a few hundred dollars."
Donna Boyd's mother passed away recently and she kept her memory alive by selling her gold and making custom rings.
"I had a couple pieces my mother had and we redid them and made them into pieces for my daughter and me," said Boyd.
The main difference between a pawn shop and fine jewelry store: The jewelry stores never resell items. Instead, they send it to gold refineries to melt it down and remove impurities.
However in the end, you still cash in.
Platinum is valued at $1,700 an ounce, and silver is $40 an ounce.
