Wednesday, April 17, 2013

Is the Federal Reserve Buying Scrap Gold in the New York City Jewelry District?

It would be very odd if the Federal Reserve would be doing such, but the rumor was passed on to me by a fairly well known economics and finance professor, so I decided to check it out.

I called a few of my contacts on 47th Street, that's NYC's jewelry district, and I also called one gold dealer who operates in the downtown Los Angeles jewelry district.  These jewelry districts are, btw, the best places to buy diamonds, if you know what you are doing.

The Los Angeles dealer told me he hadn't heard anything, but that the Fed should be doing such to get money into the system. Gold dealers have a sense of humor.

One 47th Street dealer, who is a big gold buyer, told me the Fed wasn't buying anything from him. He then laughed and said that I should "Google it."

Another 47th Street dealer told me that its the middle of the month and the only activity at all in the district was from water delivery trucks delivering water for water coolers.


  1. I feel like this means either two areas: Fed is buying Gold like crazy, or the Fed is too dumb to buy any gold....

  2. Can you go into more detail regarding: "These jewelry districts are, btw, the best places to buy diamonds, if you know what you are doing." Maybe a separate post?