S. Fla. Pawn Shops Cashing In On Modern Day Gold Rush
CORAL GABLES (CBS4) - The price of gold is on the rise and South Florida pawn shops have seen a business boom as people try to cash in their precious metals.
"They're not selling because they need to, they're selling because right now is the right time to sell," said Eduardo Deboyrie of Gables Pawn and Jewelry.
Deboyrie has been buying lots of gold and then turning around and selling it to a refinery at a time when prices are hitting more than $1,700 an ounce.
And people aren't just coming in to sell one piece, they're selling all of their gold.
"You can hold on a little longer and see what happens. But when you start seeing gold head back into the low $1,600s, you lost your window of opportunity," said Deboyrie.
Some gold traders on Wall Street think this is the start of an upward trend.
"In the short term, yeah this is a huge rally, technically speaking, maybe it's overbought, maybe it's not. The long-term picture, in spite of a debt ceiling agreement, in spite of an S&P downgrade, it's very, very bullish long-term for gold," said Paul Sacks, a gold trader.
But why? It's all about perception. Gold is considered one of the safest investments. In fact, when most of the stocks dropped dramatically Monday, gold stocks were up, and Deboyrie does not see that changing anytime soon.
"I think we can foresee gold going up in the future, with the way things are going," said Deboyrie.
