Recently, a suspicious fire ravaged the inside of local store Harold the Jewellery Buyer. The alleged arson is the latest in a series of bizarre events that has Forest Hill residents on high alert.
Police said the fire was likely caused by an incendiary device, such as a Molotov cocktail, being thrown through the storefront window early one morning. Meanwhile — while police continue to investigate the alleged arson — owner Harold Gertsel is conducting business as usual. Just two days after the fire gutted the cash-for-gold store (on Bathurst Street near Glencairn Avenue), Gertsel opened his new store for business at 3114 Bathurst St., just north of Lawrence Avenue West. “We have a brand new, expanded store,” Gertsel said, upon being asked how he was managing.
He said business has been fine and that a lot of people have come to the store to offer condolences. However, one person he said he hasn’t received condolences from is Jack Berkovits of Omni Jewelcrafters, the cash-for-gold store that operates just across from Gertsel’s old location. According to Russell Oliver, owner of Oliver Jewellery on Eglinton Avenue West, the stores in the area have been locked in a turf war, which escalated last summer when 71-year-old Harold employee Maria Konstan allegedly hired someone to murder Berkovits. While Konstan was supposed to appear in plea court late last year, her case has been deferred.
“From what I understand there’s been a whole big history of wars going on at Bathurst and Glencairn of people threatening each other,” said Oliver.
He said one way cash-for-gold stores often attempt to steal customers is by hiring employees to wear sandwich boards and loiter outside of competitors’ stores. He alleges that there is a newer businessman operating across from Harold the Jewellery Buyer who sends sandwich board employees over to Gertsel’s store every Saturday, knowing the Orthodox Jew will be closed to observe the Sabbath, or day of rest.
“He has guys walking outside of Harold’s place and gets the business that Harold doesn’t get on Saturdays,” said Oliver. “Harold is upset obviously. I would be upset, too.”
Other cash-for-gold stores have also popped up, including Mr. Gold Buyer and a new Omni Jewelcrafters location, both on Eglinton Avenue West.
Nick Barisheff, CEO of locally based gold-investment company Bullion Management Group Inc., said more shops are popping up for two reasons: the rising price of gold and the economic climate. “With people out of work, having trouble making ends meet, they’re going to try and cash what they can,” he said. “The gold price is rising and economic conditions are tough; these places sprout up.”
According to Barisheff, gold value rose 25 per cent in 2010. Today it sits at approximately $1,400 US an ounce.
However, Oliver said many new cash-for-gold operators are misguided in thinking that rising prices translate into rising profits.
He said he has received a bit more business lately, with some customers claiming the arson incident has made them more careful about where they go, but that generally most customers use the cash-for-gold competition to their advantage. “They’ll say, ‘I’ll go to others or I’ll go to you, but you’ve got to give me a top price,’” said Oliver. “We used to try and give people like 70 or 80 per cent of the value, now we have to give people either 90 or 95 per cent of the value because they’re asking for more.” However, Oliver said there’s still enough business for everyone to get by and that there should be no reason for turf wars.
Berkovits could not be reached.