Trey Spence, owner of the Diamond Exchange of Johnson City, is noticing an increase in business due to record-high prices for gold and silver.
On Wednesday, President Donald Trump’s decision to impose tariffs on certain imported goods led to rising trade tensions, further impacting precious metal prices.
“Silver is currently around $33 to $34 per ounce, and gold is hovering around $3,100 per ounce. These are record-high prices for both metals,” Spence explained.
The Diamond Exchange has seen high prices for gold and silver before, notably in 2017. During that period, economic factors, including instability in the housing market, caused gold prices to rise sharply.
“When gold prices surged, many people decided to sell their gold and silver since it was more valuable than before,” Spence recalled. “We could always use the material in our jewelry manufacturing, so we benefited from those higher prices.”
Since the Diamond Exchange mainly manufactures jewelry in-house, it is not heavily affected by import tariffs.
“If tariffs start affecting diamonds, that would be an issue for us because we import those,” Spence noted. “However, unless tariffs are imposed on the tools or packaging we use—some of which we source from China—we aren’t likely to be significantly impacted. In fact, if tariffs don’t affect us but hit our competitors, we might even benefit.”
Despite these benefits, Spence acknowledges the challenges that come with high gold and silver prices.
“When we sell an item, we can’t replace it at the same price. The higher cost of gold and silver means it’s harder to keep up with pricing,” Spence said. “Customers are often shocked when they see how much metals like gold cost now compared to just a few months ago.”
For customers, the price increase means jewelry will become more expensive.
“Every piece of jewelry, whether it’s custom-made or bought from other stores, will cost more because the materials are more expensive,” Spence added. “As long as gold and silver prices keep rising, we expect prices to continue climbing, though platinum hasn’t risen as much yet—it likely will in the future.”
Spence suggests that now is a good time to sell gold or silver, as the prices are high.
“Today is a better time to sell than yesterday, and prices may keep going up,” he said. “It might also be a good time to buy because prices are likely to rise further. A month ago would have been the best time, but now is the second-best.”
For those planning to sell gold or silver, Spence advises comparing prices at different places to ensure they are getting the best value.
“Make sure you’re getting a fair deal by shopping around,” Spence said.
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