Gold hits record high

Gold jewellery glints in a shop window, tempting people inside.

But as the gold price hovers around $950 U.S. dollars an ounce - many customers aren't buying, they're selling.

This jewellers in London say they've seen a large increase in people selling gold since it hit a record high of $1000 an ounce in March.

That prompted this customer to consider selling his gold pocket watch:

SOUNDBITE: No name given, Customer, saying (English):

"Because the price of gold is high and I need the money."

While 950 to 1000 dollars for an ounce of gold sounds like a good earner, jeweller Max Ullmann says the spot gold price is not what sellers receive:

SOUNDBITE: Max Ullmann, Jeweller, saying (English):

"If it's nine carat gold, then this is not the same gold as is being advertised as one thousand dollars an ounce on the news. This is nine parts gold and fifteen parts alloys, alloys are scrap metal, you know, copper and brass and tin and zinc, and things obviously with far less value than gold, the gold that you see advertised on the news, the gold that's being traded and the gold that's being bought by the banks is pure gold, twenty-four carat gold, which is not the purity of gold ever used in jewellery-making."

Most will only get around 330 dollars an ounce for nine carat gold, but that hasn't deterred many from selling their precious items.

In Germany, jewellers say all types of gold are coming in.

SOUNDBITE: Karl-Eugen Friedrich, Chairman of German Jewellers' Association, saying (German):

"I have to say the number of gold sale offers has certainly tripled or quadrupled. Almost everyone has some gold in a drawer at home which they don't wear any more, from gold teeth to a gold chain they bought in Italy in the 70s."

And while those selling the old gold they've found at home can still make a tidy profit, some analysts are sounding a note of caution.

They say the turmoil in the financial markets has pushed prices for gold and other commodities like oil well above fair market value.

So those wanting to make some money should be selling their gold now, rather than wearing it.

Joanna Partridge, Reuters

glint n.

1. A momentary flash of light; a sparkle.

2. A faint or fleeting indication; a trace.

v. glint·ed, glint·ing, glints

v.intr.

To gleam or flash briefly. See Synonyms at flash.

v.tr.

To cause to gleam or flash.
hov·er intr.v. hov·ered, hov·er·ing, hov·ers

1. To remain floating, suspended, or fluttering in the air: gulls hovering over the waves.

2. To remain or linger in or near a place: hovering around the speaker's podium.

3. To remain in an uncertain state; waver: hovered between anger and remorse.

n.

The act or state of hovering: a helicopter in hover.
al·loy n.

1. A homogeneous mixture or solid solution of two or more metals, the atoms of one replacing or occupying interstitial positions between the atoms of the other: Brass is an alloy of zinc and copper.

brass n.

a. A yellowish alloy of copper and zinc, sometimes including small amounts of other metals, but usually 67 percent copper and 33 percent zinc.

b. Ornaments, objects, or utensils made of this alloy.

tin n.

1. Symbol Sn A malleable, silvery metallic element obtained chiefly from cassiterite. It is used to coat other metals to prevent corrosion and is a part of numerous alloys, such as soft solder, pewter, type metal, and bronze. Atomic number 50; atomic weight 118.71; melting point 231.89°C; boiling point 2,270°C; specific gravity 7.31; valence 2, 4. See Table at element.

de·ter v. de·terred, de·ter·ring, de·ters

v.tr.

To prevent or discourage from acting, as by means of fear or doubt: "Does negotiated disarmament deter war?" Edward Teller. See Synonyms at dissuade.

v.intr.

To prevent or discourage the occurrence of an action, as by means of fear or doubt: "It's this edge that gives nuclear weapons their power to deter" Thomas Powers.
ti·dy adj. ti·di·er, ti·di·est

1. Orderly and neat in appearance or procedure. See Synonyms at neat¹.

2. Informal Adequate; satisfactory: a tidy arrangement.

3. Informal Substantial; considerable: a tidy sum.

tur·moil n.

A state of extreme confusion or agitation; commotion or tumult: a country in turmoil over labor strikes.