The Next Gold Rush: Your Living Room

It's Friday night in Long Beach, Calif., and these women not only have drinks in their hands, they have full pockets. CBS News correspondent Ben Tracy reports its fitting, at what is dubbed a "gold party."

"There's nothing to buy," said one partygoer. "It's just cash for gold."

So they come with their jewelry, most of it is as out-of-date as the person who gave it to them.

"This is a ring with a dolphin on it, I do believe," said one woman.

"One is from an old boyfriend," said another.

First, it gets inspected, then weighed. Often, it's worth a lot more than you would think.

"Beats working an extra shift," one partygoer said.

All of that former finery ends up at a smelter, melted down into gold bricks often worth $10,000 a piece. Many are now hoarding them as a hedge against a sinking stock market. Americans bought 77 tons of gold bars and coins last year, a 42 percent increase from 2007. With gold prices up to around $900 an ounce, and the economy down, many are passing on the little blue box. It is even turning some jewelry sellers into gold buyers.

Joe Shafir now drives an aptly colored car - gold. He hasn't sold a single item at his jewelry shop in five months. But he's making tons of money buying ounces of gold.

"It makes more sense to buy and recycle old jewelry than to be in the business of selling new jewelry to the customers," Shafir said.

Meanwhile, these gold parties are providing a much needed source of cash.

"It's not just fun money," said Erin Stevenson. "It's paying the bills or paying the mortgage."

Marie Dicola-Meyer's husband broke his neck and they have $3,000 in medical bills. She brought her gold thinking that she'd maybe get $100. Try 10 times that - $1,190.

"Thanks Josh - that's my ex-boyfriend," said Dicola-Meyer.

An old relationship - worth its weight in gold.