New gold rush hits the region

A gold rush in the Black Country is gathering pace as dozens queued to sell their unwanted jewellery.

Rex Johnson & Sons, in Birdcage Walk, Dudley, was today paying out hundreds, and even thousands, of pounds to people cashing in on record high prices for gold, the highest value since 1979.

David Walters, the buyer at Rex Johnson & Sons, said almost 60 people had sold items to them yesterday while a further 40 quotes had been given out for people to think about before making a sale.

He said: "The price can go up as well as down.

"It's just like watching the stock market when dealing with shares.

"It's a good time for us to buy but at the moment, as with all things, not many people are buying jewellery in the same way they are not buying big electrical items."

Mr Walters said the gold is either sold on as antiques or sent away to be melted down as scrap.

While the scrap value of gold is high the most fashionable pieces of jewellery to buy are diamonds, he said.

Typical items brought in for valuation and sale included medallion chains, popular in the 1980s but which have now fallen out of fashion, and even sovereign rings, a must-have for young men five-years ago, but now carrying the stigma of the hoodie.

Proprietor Ben Johnson said: "Compared to a normal day at this time of year the amount of interest we have had has been phenomenal.

"On an average day we might buy gold from five people but yesterday we had 53.

"One lady brought in some sovereigns and a few other pieces and I told her they were worth £180.

"Her mouth dropped open and I thought she was going to be disappointed but then she told me she thought they would only fetch £30.

She said people would be surprised, adding: "People just don't know what they've got lying around in a drawer."

Scrap gold was yesterday worth £124 for a an ounce for nine-carat, up to £280 for a 22-carat.

But throughout the day the price increased again to £125 for nine-carat and £285 for 22-carat.

This morning the price started at £126 for nine-carat and £290 for 22-carat.