Gold, silver and jewelry: economic thermometer, family lifeline

The streets are recovering life. The businesses that had to lower the blind with the start of the confinement, little by little have been raising it and conditioning everything for this new era. The economy begins to move. very slightly. At a snail's pace compared to Spain two months ago, but at least it starts, it hasn't caught the flu.

The talks on the terraces are about more than just being fed up with the coronavirus. There are those who are capable of making a clean slate, and others who see that after the health crisis, comes the economic one. Not only does macroeconomics warn, in the mouth of the Central Bank of Europe or the Bank of Spain, but microeconomics, the neighborhood store, is also beginning to have symptoms. And in many neighborhoods of Almería there is a gold buying and selling business, which perfectly warms the citizen's pocket.

Avenida de la Estación and the surroundings of Puerta Purchena (Avenida Pablo Iglesias and Plaza del Monte, mainly) are the city's Golden Mile. This is precisely the name of one of the establishments visited, which demands respect and zeal when it comes to keeping security measures against the coronavirus. While serving a middle-aged customer, two wait outside. "I've been investing for many years, now the price of gold is high and it's time to do business," says Paquita B. López, who shows wisdom in the matter.

Unfortunately, sometimes you also have to do business by parting with jewels of great family value, since the different letters are urgent. "I'm going to see how much they offer me for these rings, they belonged to my aunt," says José María Maldonado without giving further details. Not out of shame, that you shouldn't have it for going to these respectable businesses, but because each one uses their possessions in the way they consider appropriate.

“We see that people are coming, calling even before the opening. There is a perceived need for people who have not received the Erte or who have difficulty having a small business closed. We are attending appointments and every day it increases more and we perceive that people need liquid money", points out Fernando Illanes, manager of La Milla de Oro, who explains the reasons why his sector will not lack work: "For one part, the economic situation of need that people have. On the other, the rise in the price of gold, the price is at an all-time high. Selling at a low price is not the same as now that it is 30% higher than six months ago. There are also people who request the services to invest, the sale of gold bars for investment did not stop with the confinement and this has multiplied by six or seven compared to last year”.

If the business operates on Avenida de la Estación, in its counterpart Pablo Iglesias there are also customers reading the security warnings, to enter Quick Gold Almería to negotiate with their goods. “If on a normal day around fifty customers came, in the first days after the opening, twice as many have been able to come. It is also true that there are people who come to review and renew their contracts. These days we are working a lot electronically, so that customers do not have to physically come to the store," says Mari Ángeles López, manager. The business has a double way of working. “We mainly buy pieces of jewelry, we also work with investment gold. We are also a currency exchange house, the only official one of the Bank of Spain in Almería. I think this will be weaker, since at the moment it is not possible to travel, although we have not yet perceived a difference. There are people who continue to have foreign currency to change and we continue to change at a good pace, perhaps in two or three months things will change”. Everything will depend on tourism, one of the bases of the Almeria economy.

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Calmly, knowing that the queue is not long but it does require a waiting time, as in banks, customers wait their turn. Some have received news of the gold rush and want to take advantage of the opportunity. Others come with jewelry to sell and talk about it openly. Years ago, during the real estate crisis, the cheeks would turn red if they saw one in this situation. Fortunately, Illanes assures that no one hides behind a cap and sunglasses anymore. "This has changed. We have been in this sector since 1989 and we have noticed the change. Until 2009 or 2010, people were more reluctant to do business. Establishments like ours have been opening for a long time on the main avenues of the cities, the client enters a gold sale like someone who enters a jewelry store or a pharmacy. There are people who enter out of necessity and others who want to change jewelry, or who use the money for some whim, like a trip. There is no longer the fear of being seen in our establishments”, who works with the best stones on the market: “Before, yellow gold was sold more: the bracelet, the chain with the medal or the cross; now it's more white gold with some brilliant, solitaire type. In jewelry we work with gold and silver, while in gold, silver and palladium investment bullion. There are also investment coins, all in our stores and our website www.oro-express. es”, where you can make a request if the fear of the virus continues to grip your legs.

Along with the houses of gold, the origin of this type of trade must be found in the Montes de Piedad. Almería has its own (Monte Activo Fundación Unicaja), in the Plaza del Monte. There, at the foot of Cerro de San Cristóbal, the queue does not distinguish who is going to negotiate with their jewels from who is going to carry out other operations. “No, I am not here to sell jewelry. In fact, I don't even have one”, says a middle-aged client, Jesús Magaña. “The Pawnbrokers have always been a social tool and Monte Activo of the Unicaja Foundation is providing immediate solutions to the numerous problems that have arisen from this crisis, which has taken many businesses, payrolls, etc. The immediacy of an urgent need is basically our day to day”, explains Manuel García.

The director of the Monte Activo Fundación Unicaja lists the differences they have with the houses of gold. “As an entity, we are the only ones that can legally grant loans with the guarantee of jewelry. Trading houses offer a purchase with a repurchase option with an intermediation margin higher than the interest on our products. Although it is true that we also carry out jewelry auctions for those clients who disregard their obligations, but this is totally marginal. 98.5% of pawned pieces are recovered by the owner”.

“The operation is always carried out at the moment and in front of the client: it is valued, appraised and a maximum amount is offered. The duration is one year and one month free; If after said period you do not withdraw your assets, it is extended for another year. In the same way, there is another public that seeks to have their jewelery deposited in a safe place and, at a very low cost, we also offer this service”, concludes García, noting that not all the public that come to their offices is for the simple sale of jewelry.

It's almost two in the afternoon. The few shops that have already opened lock up until the afternoon, the morning has not been very fruitful. Few people and, in some cases, not a single euro to the box. Monte Activo Fundación Unicaja and the gold trading houses do the same, although they have had work and have opened the safe more than once. Rambla down until you reach Oliveros, in the cafeterias you can see the traffic that allows 50% of its capacity. It is not enough for the economy to reach the shore. Gold, silver and jewels are going to be the life preservers of many Almeria families.