Los Angeles (AP) - At the largest jewelry center in the United States, Alberto Hernandez launched his machine on the most recent day, waiting until it glitters inside, and then shovels on shovels of shovels, earrings, earrings and necklaces, weighing as much as soap, with just 100 grams or 3.2 grams or 3.2 troy troy ounces.
After a few minutes, the bubbling liquid metal cools in the size of a rectangular cast shoe. An X-ray machine determined it was 56.5% gold, worth $177,000 based on the price of the gold on the day.
As gold prices soared to record highs during global economic jitters, hundreds of thousands of dollars worth of gold circulate in the gates of St. Vincent Jewelry Center in downtown Los Angeles.
Many of the center’s 500 independent tenants, including jewelers, gold refineries and analysts, said they had never seen such a surge in customers.
“Now, we see a lot of rappers and stuff melting their big work,” said Alberto’s nephew Sabashden Hernandez, who worked at A&M Precious Metals. “We’re receiving a lot of new customers, they just receive everything from grandfather and melt it a lot.”
Gold's current rally comes as President Donald Trump issues changing announcements about tariffs, homeless financial markets and threatens to restart inflation.
In response, people across the country are flocking to sell or melt their old jewelry for quick cash, including middlemen like pawn shop owners. Others think their money may be safer in gold than a turbulent stock market.
People are even introducing family heirlooms, said Olivia Kazanjian, a Los Angeles jeweler.
“They are melting with their family’s wedding dates and things from the 1800s,” Kazan An said.
She recently paid a client 14 carat gold bracelet with intricate blue enamel pieces that could be turned into brooches. The customer emits an amount of $3,200 for $3,200, which contains the amount Troy ounces, which is equivalent to the 31 grams of precious metal standard.
But Kazan Jane does not intend to melt the work. She said there is much more real artistic and historical value.
“It’s amazing…you won’t see this craft again,” said Kazan An, who added that she convinced some clients to change their minds and melt items. “It’s a history, and if you’re lucky enough to inherit it, it’s your family.”
Businesses in action sales provide gold bars and other materials, and are also working hard to keep up with crazy efforts.
"Things came in and it immediately appeared," Edwin Feijoo said. "Everyone is busy right now. ”
However, business is not a good thing for everyone.
For some jewelers who purchase products from abroad such as Italy, Türkiye and China, the combination of high prices and increased tariffs reduces profit margins and hurts demand.
"We have very thin margins," said Puzant Berberian, who founded V&P Jewelry in 1983 in St. Vincent. Berberian said he recently paid an additional $16,000 on a package overseas.
When customers can’t afford the things they’ve been, they also feel “sticks shocked”. The 14-carat gold bracelet that weighed about 10 grams (0.32 Troy ounces) last year sold for about $600 last year, but is now close to $900.
Some believe that for consumers and businesses, these trends can continue.
According to Sam Nguyen, a client who wants to buy gold bars “think gold will increase”, his business, Newport Gold Post Inc., has bought and sold gold and other precious metals at St. Vincent for five years. While gold has a record high of 3,500 ounces per euro, Nguyen believes it can reach $4,000 to $5,000 by the end of the year.
Jeff Clark agrees. The founder of Gold Advisor, who provides investment advice, said he would not be surprised if gold prices continue to rise, as metals are considered a safe haven for people to be anxious about a possible recession.
"History shows it's been much higher in the past," Clark said, referring to the madness of the 1970s, when the average price of gold medals increased 17 times in double-digit inflation. “If fear and uncertainty continue to exist among the general population, then prices will continue to rise.”