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DL Gold and SIlver open for business

DL Gold and Silver owner Jeremy Schoenberger opened up shop inside the Ace Vacuum Sales & Service location at 1150 Washington Ave. in Detroit Lakes three weeks ago. (Taylor Blank/DL Newspapers)2 / 2

Gold fever is contagious, at least in the Schoenberger family.

Jeremy Schoenberger is taking after his grandfather, Allen Schoenberger, in setting out on his own in the gold and coin business.

Schoenberger opened DL Gold and Silver three weeks ago.

It's the perfect time to get into the gold business.

Every day, the price for an ounce of gold seems to break record levels. It's approaching $1,140 an ounce as of Tuesday.

Customers needing a little extra cash are catching on to the business.

"Not everyone might have gold coins lying around, but most have an old ring lying around," Schoenberger said.

About four out of every five customers are looking to sell their scrap gold, he said.

Schoenberger said with companies like Cash4Gold and others advertising heavily on TV, people want the best deal.

"People don't want to send their stuff away to who knows where," he said.

Silver is a popular item as well. DL Gold and Silver also buys platinum.

The current price is over $18 an ounce, nearly tripling in value since 2006.

The ratio of gold's value to the price of silver is also increasing beyond the normal rate.

"The ratio now is 60-to-1," Schoenberger said. "Typically the ratio is 50-to-1."

Schoenberger said that he pays more than Cash4Gold or other gold buyers do on average.

"I use a couple of refiners," he said. "They pay close to spot for it."

He said that the big-name buyers pay about only half of market value. Schoenberger, however, said he pays customers between 80 percent to 85 percent of the going market value for customer's gold.

"I don't have many expenses," he said.

For sellers, it looks to be a good way to go compared to other options, such as pawn shops.

Rent is inexpensive at his locations, plus he doesn't have to pay for fancy television commercials blasted over dozens of channels.

Customers can also get paid the same day, unlike the waiting game when someone mails their gold away.

"I just use Midwest Bank," Schoenberger said. "They can cash the check right away.

DL Gold and Silver will be expanding its inventory over the winter.

Schoenberger will be traveling around the state visiting various dealers. He'll also be helping his grandfather with his Lake Country Gold and Silver business.

"I'll be going on the road, buying stuff and bringing back a lot of inventory that way," Schoenberger said.

The business itself is all about networking, since a dealer can't possibly have every coin.

"If someone wants something that I don't have, I can find someone who has it," Schoenberger said.

DL Gold and Silver is located inside Ace Vacuum Sales & Service at 1150 Washington Ave. Schoenberger can be reached at 234-3487.

"I have the phone on me 15 hours a day," he said.