Gold Jewelry - Is the High Cost of Gold Affecting the Designers?
Gold Jewelry - Is the High Cost of Gold Affecting the Designers?
By Nan Wood
Gold has been pricing out over $580.00 an ounce in recent weeks. Earlier this year the price was $730.00 an ounce. On May 12th, the price reached a 26 year high of $732.00 an ounce. Since then, prices have dropped twenty-two percent which still leaves the price in the $580.00 an ounce range.
Prices for gold jewelry seems to depend more on the design value of the jewelry than the actual amount of gold contained in it. According to the World Gold Council, sales in the United States seem to be rising. The Council believes the US customers buy gold for adornment, not the investment value of the jewelry
Since jewelers place their orders months in advance, it will be interesting to see what merchandise is available for the holiday season. With the fluctuating prices, it will be more difficult for both designers and retailers this year.
The gold in the stores now, was purchased prior to this recent instability of the price. Since gold is at a high now, the gold in our stores for the holiday season will have been purchased at almost all-time high prices when the inventories must be increased for the seasonal sales.
Some retailers, including Blue Nile, an online jeweler, is not totally passing on the higher prices to the consumer. This creates lower profit margins for designers but make gold a better buy for the consumer.
Shop wisely. Check prices. If you can be flexible, your will find exactly what you want at an affordable price. Give the "Gift of Gold" to your special person.
Nan is an Accountant and RealEstateAgent with an interest in GoldJewelry
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