Posted on January 2, 2008 in Gold Jewelry Faq
Gold prices fluctuate according to the demand for gold.These days people the world over are investing more money in gold than ever before, as it is considered a solid asset. This increase in investment is leading to an increase in gold prices.
One factor that has an impact on the gold price is the decline in value of the U.S. dollar. The fear that the U.S. dollar will continue to decline further has led to individuals and businessmen investing in gold, and this in turn has led to the increase in gold prices
But whatever the political and economic reasons leading to the fluctuations in gold prices, there is a universally accepted concept called Gold fixing for London and American gold price.
Jewelers place their orders months in advance. The gold in the stores now, was purchased much before this recent instability of the gold price. Since gold is at a high now, the gold in all stores for the holiday season will be sold at all-time high prices.
Prices of gold jewelry also depend more on the design value of the jewelry than the actual amount of gold that is contained in it.So go for simpler designs if u want to buy at a cheaper rate.
All precious metal jewelry including gold goes through an average of 4 middlemen before it is sold to the consumer. Every time the jewelry goes through a middleman, a mark-up is added. By the time any jewelry reaches the end customer, the price is marked up several times. Now what if you could buy directly from the wholesaler? Even if the wholesaler marks up the prices, it would still be less compared to what u get from retailers.
So why don’t all wholesalers sell directly? Wholesalers sell in large volumes and require a minimum of few orders. It may not be economically feasible for the wholesaler to sell individual jewelry pieces. But the internet is rapidly changing the way jewelry business is done.
A wholesaler can decide to sell his jewelry online or set up a store. It would offer a greater selection for customers, and it eliminates multiple middlemen, which is good for the end consumer. Although internet jewelry stores cut down most middlemen, even retail stores can do this.If you plan to purchase your jewelry at a retail store, choose a store that has a large selection and variety of the type of jewelry you want, as these stores usually purchase from bigger wholesalers than those jewelry stores that sell a little bit of everything. Retail stores that specialize in one type of jewelry have a large inventory and they usually cut down multiple middlemen, saving you money.
Other factors that determine gold prices
Whether the jewelry is imported or domestic. Imported jewelry, will cost more because it is subject to import duties and taxes. If any special process was used to create the gold jewelry. Example, yellow gold jewelry costs less to manufacture than white gold jewelry. If the jewelry is handmade or of a special kind. In the US and in most other countries, jewelry is weighed in units of grams. But many jewelry stores do not disclose the actual weight of each piece of jewelry.So when comparing prices, ask for the gram weight, and based on the price, calculate the price per gram.
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