The price of gold is historically high. In five years, it has almost doubled, which pushes Swiss men and women to sell jewelry, watches and even bars. But this frenzy also attracts scammers.
A year ago, Jean-Benoît Subias started buying gold. He buys jewelry which he then sells to a foundry which will make ingots. He pockets a 10% commission along the way. This is less than the commissions charged in most of the specialized shops that have appeared in recent years in the shopping streets of Swiss cities. Their costs are higher, often with a significant rent.
The Gold Service company has been offering its gold buying and selling services for 130 years. Despite a commission that fluctuates between 18 and 20% on the purchase of gold jewelry, business is good. “The gold trade is based on trust. Buyers can come to us for advice and leave without having sold anything. Here, they also find the assurance that in the event of a problem, we will always be there”, details the owner and CEO of Gold Service, Yann Bouillonnec, in the RTS show Basik.
Any type of profile
The gold trade today attracts all types of profiles: grandparents who prefer to give their children cash rather than old-fashioned jewelry, workers who struggle to make ends meet, investors who take advantage of high prices to get rid of an ingot.
There are several reasons for the high price of gold, says Ipek Ozkardeskaya, market analyst at Swissquote. “Gold is seen as a protection against current inflation. It is also a safe haven in this context of geopolitical tensions. But above all, we are seeing a very strong increase in demand for gold from central banks, which causes its price to rise.”
-Precautions to take
This high demand comes in particular from the central banks of China, India and several Eastern countries, which favor gold to the detriment of American treasury bonds. High demand automatically leads to an increase in the selling price.
The gold market is buoyant and also attracts unwary buyers. To avoid bad experiences, the Confederation gives a series of advice: photograph and weigh your jewelry at home before any transaction, check the official gold price and ask for several offers from buyers.
Gabriel Tejedor/asch
Swiss
