Gold Price Spike Strains Perry Hall Jewelers

Jewelry store owner Mahmoud Mandour said he remembers when gold accounted for 40 percent of total sales. That number has since dropped to 15 percent.

"A gold chain that used to sell for $100, now it sells for $300," said Mandour, owner of  in Honeygo Village Center in Perry Hall. "Who would spend $300?" 

Mandour said he has tried to maintain low prices, but he has no control over the rising price of gold, which hit a record price of $1,500 an ounce Tuesday afternoon. 

While it's uncertain if prices will fall or continue to rise in the near future, local jewelers said they are feeling the impact. 

Vinny Fino, co-owner of  on Belair Road, also said he sells less gold than he used to, but high prices aren't the only factor to blame. "We've been affected by the poor economy as well," Fino said. 

A sign above a glass case of gold necklaces reads "30% OFF Gold Event." Fino said that he and metal wholesalers do what they can to keep the jewelry affordable. 

"We're not raising the prices of everything every day," Fino said, adding that he expects gold prices to decline eventually. "I don't think that what we're looking at is permanent." 

But the increased price of gold can also benefit business, Fino said. "Say you wanted to sell your gold, we could give you a higher price for it." 

Fino buys gold and silver from customers in all forms, which he melts in the back of the store. After it is formed into bars, it can be sold on the open market.

The price of silver also reached a high of $44 per ounce on Tuesday. 

"A lot of people are selling us their silverware," Fino said. 

But the sale of silver jewelry has also greatly increased at , Mandour said.

"Customers don't have a lot of money to buy real gold, so they're switching to yellow silver," he said.

Only one part of his jewelry business seems to escape the impact of economic pressures, Mandour said: the sale of engagement and wedding rings. 

"When you get married, you expect to pay more," he said. "You buy engagement rings one time." 

The same applies at , co-owner Maria Fino said. "If they're getting engagement rings, they're buying whatever they want."