OLD GOLD TRADE

Hokitika Guardian, 28 September 1933, Page 8

OLD GOLD TRADE

SUPPLIES DIMINISHING. FEWER SALES REPORTED. AUCKLAND, September 26. “The .amount of old gold offering in the -market to-day is considerably less than that which was forthcoming a year ago.” said an Auckland jeweller, in commenting on the noticeable falling off in the amount of business done in the city by dealers in old gold. Last year many foreign buyers visited New Zealuid and obtained temporary premises to carry on the business. Tenancies of these shop s were arranged only from week to week, as it was apparently realised that the period during which gold was to be brought and shipped overseas with a fair margin of profit would not be a very long one. Now there were not nearly so many shops in Queen Strea; which specialised only in purchasing bangles, watches, jewellery and ring s made of gold.

The -fact that an export duty of 12s 6d ail ounce had been imposed last year was responsible for a U ■ or:"-,<- ]<•■ <»- ir.g of the price that dealers could offer Previously there had been a h.tl f-ci'Owl3 duty on fine gold of 24 carats. The 12s 6d had been imposed on 20 carat gold, so it hat it caught dealers “both ways.” Although this duty caused a slight'decrease lor a time in the amount offered over the counter, sellers .soon brought out various articles that might realise a good .price.

“Supplies have Ibeen diminishing to such an extent recently that it'has not beein worth while for specialist goldbuyers to continue paying even a moderate rent,” continued the jeweller. is w as in spite of the fact that a considerable increase had taken place in the price of gold in London. In September, 1932, the price per ounce of gold in London was £5 18s 6(L and a largo amount of business was being done in Auckland. The .world price of gold had risen in. the present month to the record .love] of £6 13: 9d. but even the greater inducement, of the high price did not have the effect of bringing forth I further supplies an any large quantity.