Those in the jewelry business or jewelry fans or even those who follow gold stocks will have noticed that gold has had a significant drop in price. This can be good and this can be bad. It all depends on how you look at it and where your interests lie. If you purchased gold as an investment, you may be losing part of that invest right now. If you are a jewelry store owner who purchased inventory while gold was high, you might have trouble moving stock as prices drop.
On the other hand, if you are a jewelry junkie like me, when gold drops it makes it a much more affordable option. For quite a few years gold has enjoyed continued run ups in price. It became more expensive than platinum at one point not too long ago. A simple gold chain became outrageously priced and for many unaffordable. This was a particular bummer if you needed to replace a chain that had broken. Although the high price of gold did spawn a lot of gold buying “rip-off” joints for those broken chains.
The high price of gold also fueled an interest in alternative metals and creative jewelry design that was not as dependent on gold as the main ingredient. Designers were particularly creative with stainless steel, fabric and leather. It was fashionable to wear something edgy and avant garde. It also helped to increase the popularity and acceptance of fine fashion jewelry. Some may call it costume jewelry, but in many cases it is well made fashion jewelry using sterling silver and semiprecious gems, not exactly costume jewelry.
While gold has been slowly dropping for a while now, no one predicted the huge drop that was seen over the past week. Even The Wall Street Journal was surprised by how far gold had dropped; it actually hit $1369.00 in trading at one point. Gold is down close to 9% over the past year and approximately 13.5% over the past 30 days. Unfortunately we won’t see substantial changes in gold jewelry for quite some time as current inventory represents past pricing, but if you’re patient you might see some good news in gold jewelry pricing come the fall.