Growing up in Oaxaca, Mexico, Isis Rodriguez was drawn to silver and gold. Jewelry made from those precious metals was often passed down in families, and seen as a way to preserve wealth.
But for Rodriguez, it was mostly about accessorizing her outfit. She often wears a silver chain necklace with a St. Benedict pendant, also silver.
“I own more silver, but I want to rock [wear] both gold and silver,” she said.
But as inflation rises and the prices of gold and silver reach historic highs, Rodriguez, 27, is looking at those precious metals in a new way — for financial gain.
That’s a trend jewelry and coin shops around the Twin Cities are seeing as more customers cash in on their precious metals while others buy them, hoping prices keep going up. Such trading is especially popular in immigrant communities, dealers say.
As of Thursday, gold prices per ounce were hovering a little over $3,400. The price of gold has gone up about 36% over the last year, according to data from Kitco, an international precious-metals company. Over the past 10 years, it’s tripled.
Roger Westerling, owner of Truman Company Gold and Silver in Roseville, has been a precious-metals dealer for more than 30 years. He remembers buying silver at $3 per ounce as a kid. Now it’s nearing $39 per ounce.
Gold and silver collecting — “stacking” — has historically been a hobby for older white men, dealers say, but shops like Westerling’s are starting to see an increase in diverse and younger clientele.
Westerling said he’s noticed those trends since the COVID-19 pandemic.
“It’s the younger generation,” Westerling said. “Five or six years ago they were talking about crypto [currencies]; now they’re at precious metals.”
Westerling’s customers mainly see gold and silver as long-term investments, he said. But, he cautioned, as with any investment, there’s always risk involved.
“It depends what your ultimate end goal is, but I think you need to not spend money on it that you need to live on,” Westerling said. “Put it away and don’t look at it every day, otherwise it’ll drive you crazy.”
In St. Paul, W.E. Mowrey, a precious metals refinery, has also seen an increase in sales among members of various local Asian communities.
Manager Craig Hirschey handles business between the refinery and Asian-owned jewelry shops around University Avenue.
He said jewelers often are looking for 24-carat gold to create ceremonial or religious pieces. Meanwhile, stackers use precious metals as a way to hold wealth, often due to a distrust of paper money.
“It’s a lack of trust in the U.S. dollar,” Hirschey said. “A lot of Asian communities in Minnesota have witnessed currencies collapse [in the 1990s].”
Precious-metals stacking isn’t exclusive to first- or second-generation immigrants, said Chris LaPage, a dealer at W.E. Mowrey.
He’s seen third- and fourth-generation immigrant customers continue the trend. And as prices continue to rise, he expects more people to take on the hobby due to “fear of missing out.”
Rodriguez said she hopes to collect silver and gold as a hedge against inflation, but given the current high price of gold, she’s also tempted to sell.
She views vintage gold jewelry passed down to her from her father as an emergency asset.
“Selling gold can be a good idea if you need quick cash,” Rodriguez said. “It’s a way to turn an asset into money you can use right away.”
Buy or sell? It’s a tricky decision
The fluctuating prices make the decision about whether to buy or sell a double-edged sword. According to Michiah Potts, the manager of Twin Cities Pawn & Jewelry, any time the value of precious metals grows, clients at his shop on East Lake Street are drawn to both buying and selling.
“Because the price of gold has been consistently going up the last eight months to a year, people are getting more interested in it, because they’re more aware, which makes them want to buy,” he said. “But at the same time, if people have been holding for a long period of time, they’re also going to be interested in selling, because the price is high right now.”
The Minneapolis pawn shop, located in a neighborhood that is home to many immigrants, specializes in jewelry, but has also begun offering gold and silver coins and bars.
It’s a way to attract more customers. Similarly, David Przetycki, a jeweler in St. Anthony, told Sahan Journal he notices different preferences among his diverse clientele.
Hispanic clients often favor multicolored gold and religious pendants, he said, while Asian customers prefer higher-quality 24-carat gold and diamonds.
For her part, Rodriguez said she wants to buy some coins, but hasn’t ruled out adding a gold bracelet to her jewelry stash.
“It depends more on my vibe — anything and everything in small quantities, as long as it has some value,” she said. “I just want to look fly.”
