Friday, September 30, 2011

The Price of Gold: “Everyone said I was a fool spending all my money at Tiffany’s”

 Try Mother of Pearl for beautiful yet affordable earrings

This is a wonderful quote from the 1958 movie Auntie Mame with Rosalind Russel. I thought of it when I read an article that stated that gold is now more expensive than platinum. It begs the question, is jewelry a good investment? A number of years ago I purchased a platinum diamond ring and diamond studs, it was quite expensive because platinum was trending high. While platinum hasn’t tanked, it seems like such a reasonable investment compared to the huge jump in gold prices.

Many people try and “time” the market and the recent unpredictability of gold is a perfect example. Sometimes I feel like I’m just a little shy of a trend. Wouldn’t it be nice if we could predict when some stock would go up and when it would go down? This uncertainty in the precious metal markets has made a lot of consumers rethink purchasing jewelry in this economy. It is certainly not a necessity and with prices high one day and lower the next, people want to make sure they are getting a good deal.

 Matching Mother of Pearl Necklace

Those of us in the jewelry industry are heavily hit when precious metal prices rise. The recent fluctuation has made a lot of consumers skittish. When consumers get edgy they have a tendency to hold onto their money and in recent months, their credit cards. While I would love to tell everyone that gold is now down a bit and you should go out and buy some jewelry, it probably isn’t the correct advice for everyone. People have to gauge what they are willing to spend on jewelry and with gold so high, it’s hard to recommend this metal.

Silver on the other hand has stayed relatively low. While in recent weeks it has lost almost 25% of its value, it never got anywhere near the outrageous prices that gold has been experiencing lately. This makes silver a good buy for jewelry. Today’s silver is used in all jewelry categories and is not reserved for the ubiquitous turquoise and silver pieces of the Southwest. Many silver pieces still have an ethnic flair, but various pieces are designed specifically with silver in mind, gold is now used for an accent. So as the stock market tumbles, don’t feel bad investing in silver jewelry, jewelry maybe the only thing that doesn’t make us crazy.

 Yellow amber glows and the sterling silver makes this pendant affordable

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