As Gold Rises, Local Jeweler Tries to Stay Afloat

Mike Demirjian opened Fantasy Jewelers in Calabasas more than 30 years ago in what was then a record-breaking year for the price of gold - the precious metal sold for almost $600 an ounce in 1980.

Five presidents and four recessions later, Demirjian, who immigrated from Lebanon with his family in the 1970s, said he is afraid the price of gold might force him into early retirement.

Gold is now selling at $1,785 and ounce, Demirjian said, an almost 400 percent increase since 2005. 

He attributed gold's steep rise to instability and fear over the economy - the Great Recession has driven investors to devalue the declining American dollar and put stock in more tangible assets.

"In this economic turndown the only certain thing you have is gold," Demirjian said.

While the inflated prices for gold may be good for customers wishing to sell their old luxury items, Demirjian said, the situation has made it difficult for owners of "Mom and Pop" jewelry stores to stay afloat.

Consumers who were already cutting back on luxury items like jewelry during the recession now have even less inclination to buy, Demirjian said.

"There's no business. The only thing that [my shop is] doing is buying gold, because [how can customers] afford to buy jewelry anymore with the price of gold?" He said.

Demirjian said the recession has completely flipped his customer base in a little over a year.

"My business now is 70 percent buying gold and 30 percent selling silver and watches combined," he said. "Before it was the other way around - my business was 95 percent selling gold and everything, and just 5 percent buying."

He also fears that he hasn't yet seen the worst.

"It's back, it's 100 percent a recession, and it's getting worse and worse every month. Last July was my worst month in 23 years in this neighborhood," he said.

According to Demirjian, his shop is the only original business remaining at the shopping center at 26500 Agoura Road - the others couldn't survive through the troubled economy.

If the market for jewelry stays as low as it is now, and if gold goes above $2,000 an ounce as some have predicted, Demirjian said he will have to consider seeing his shop disappear as well.

"It's wait and see. What can I do? I'm going with the tide, and everybody's in the same boat," he said.