If Gold goes over $2000+ who would buy jewelry?

[Robert]

My thinking is:

If Gold goes over $2000+ (maybe even $3000) who would buy jewelry? i.e. wedding rings / necklaces etc? Wouldnt people stop buying Gold jewelry and buy Silver?

thanks

[optionT]

I think a certain segment of the population will continue to buy gold wedding rings/jewelry, no matter what price. And the Indians, they'll always buy gold!

[madfranks]

Maybe people will start buying 8k and 10k gold instead of 14 karat.

[Robert]

I think a certain segment of the population will continue to buy gold wedding rings/jewelry, no matter what price. And the Indians, they'll always buy gold!


optionT, people from India are switching over to Silver, cos Gold is waaaay to much money. This kinda bothers me, cos I want to buy a Gold coin but when I go to sell it, will there be a buyer for me?

thanks

[optionT]

They're switching to silver since gold is out of reach for some of the population and the fear of theft.

Indians embrace silver jewellery as gold turns unaffordable

MUMBAI (Commodity Online): High gold price is changing the custom of wearing the yellow metal jewellery by Indians. People in India—know for their craze for wearing gold jewellery—are turning to silver jewellery thanks to the unaffordable price of gold.

Gold price is in the range of record Ra 20,000 per ten gram in India, the largest marketplace for gold in the world. Though Indians are buying gold coins and bars as investment options these days, people especially in the rural areas are opting for silver in place of gold.

“Silver jewellery buying is going up across India because of the high price of gold. In fact, jewellery shops in most metros in India have opened special silver jewellery counters as people are these days flocking to buy silver,” said John Luckose, a gold and silver jewellery shop owner based in the Kerala commercial city of Kochi said.

He said that silver jewellery has turned out to be a fashion statement these days. "People fear wearing gold jewellery these days as high gold price has led to several incidents of gold jewellery snatching on streets. Many customers coming to us say that they feel comfortable wearing silver jewellery," Luckose pointed out.

In India, jewellery is revered and valued as a treasure from ages, be it any festival or a marriage, the celebrations are incomplete without gold and silver ornaments. Being the biggest consumers of gold, the industry is set to thrive for a very long time.

India is one of the fastest growing jewellery markets in the world and also the largest consumer of gold with over 700 tonnes consumption in 2010 which accounts for around 24 percent of world gold consumption, majority of it going into production of jewellery

Despite the zooming prices, demand for gold and investments continues to surge in India.

Gold and silver imports by India are set to touch record levels in 2010, according to early data compiled by the World Gold Council (WGC) and the Bombay Bullion Association.

According to WGC managing director for India and West Asia Ajay Mitra, India’s gold imports in 2010 will be around 750-800 tonnes, a record in the last one decade.

Mitra says one reason for the soaring demand for gold and silver is that Indians have correctly understood the great investment sense in bullion. He says India will continue to shine as the largest marketplace for gold and silver in 2011.

There has been growing appetite for gold and silver investments in India in the last few years and jewellery shops are opening across the countryside and cities every day.

According to WGC, demand for gold bullion as an investment in India surged 73% last year.

“Gold and silver purchases this year will continue to remain strong in India and price is no longer a factor,” he said.

India is the largest consumer and importer of silver in the world. According to commodities brokerage Karvy Comtrade silver imports by India soared more than six times to $1.7 billion in the first-half of 2010.

India is the largest importer of the silver in the world and the country consumes more than 4000 tons of silver annually with the bulk of sale being made in rural areas. India has emerged as the third largest industrial user of silver in the world after US and Japan.

The vast majority of silver in India is used in production of ornamental items like jewelry, utensils and gift articles. Industrial use account for about 1300-1500 tons. In rural areas, silver is considered as hedge against inflation and thus provides an investment avenue.

Indians are known to spend substantial part of their income on purchase of silver, partly as an unavoidable expenditure for weddings and other family celebrations and partly as investment.

Demand for ornamental silver is affected by the festive season and marriage season in February, April, June and December as well as the monsoons between June and August.

While the demand has increased substantially, annual consumption is dictated both by monsoon, with its effect on the harvest, and the marriage season. In a significant move, the government has also liberalised the import of Gold and Silver. This will provide freedom to procure inputs by jewellery exporters and add to the cost competitiveness of the Indian jewellery exports.

The Indian demand for silver is very different from the global pattern of silver demand, where 65% of the demand comes for Jewellery, Ornaments and gift articles. Industrial demand forms a minor share. Indian demand plays a major role on the global silver demand.

Industrial demand for silver in India is in the range of 1300-1500 tons per annum, the bulk of which is in pharmaceuticals, plating, electrical, foils, jari, soldering and brazing.


http://www.commodityonline.com/news/Indians-embrace-silver-jewellery-as-gold-turns-unaffordable-35844-3-1.html

[JohnQPublic]

I like silver jewelry, and have been buying some for smaller gifts.

[madfranks]

I think a certain segment of the population will continue to buy gold wedding rings/jewelry, no matter what price. And the Indians, they'll always buy gold!


optionT, people from India are switching over to Silver, cos Gold is waaaay to much money. This kinda bothers me, cos I want to buy a Gold coin but when I go to sell it, will there be a buyer for me?

thanks


Go to any coin store and ask this question and you'll probably be laughed at. Gold is money, historically for much longer than the paper money you keep in your wallet right now. Do you worry that people won't accept your paper dollars? To me, that's about the same as worrying about not being able to find a buyer for your gold.

[ximmy]

Yeah, nobody pays 3 to 10,000 dollars for a diamond ring these days... ::)

[Neuro]

The thing about precious metals is, that the more expensive it gets the more desirable it will be to wear it hold it and own it, don't put a limit on what the price in a rapidly depreciating fiat currency can be, there will always be people who wants to spend top dollars on having it. The major problem with silver up to now is that it has been to cheap to be considered good for jewelry or investment bullion, this will change as it gets more expensive...

[Silver Rocket Bitches!]

At that price a lot of people would be selling their jewelry.

Oh wait, they already are...

Sterling would be king in the jewelry world once gold jewelry is economically unattainable. It's already happening in India.

[Robert]

At that price a lot of people would be selling their jewelry.

Oh wait, they already are...

Sterling would be king in the jewelry world once gold jewelry is economically unattainable. It's already happening in India.


Sterling ? you sure about that? Silver, yes, but don't know about Sterling Silver

[JohnQPublic]

At that price a lot of people would be selling their jewelry.

Oh wait, they already are...

Sterling would be king in the jewelry world once gold jewelry is economically unattainable. It's already happening in India.


Sterling ? you sure about that? Silver, yes, but don't know about Sterling Silver


Most jewelry is sterling silver (92.5% alloy). This is for durability and reduction in oxidation rate.

[Son-of-Liberty]

I don't think the price of gold will dissuade that many people from buying gold jewelry. Maybe in India where they buy massive amounts of jewelry and the average wage is much lower. Most jewelry is priced more on craftsmanship and retail markup then on the gold content. Aren't that many rings except some very large mens rings that have more then a 1/4 ounce of gold anyway once you factor in alloying. Most womans rings are very light and small.

I've seen some bracelets and necklaces that have a decent amount of gold but they are pretty rare too. Like was mentioned, if the value is going up it will make them more appealing. Some people might even think that buying jewelry retail is a good investment cause it "always goes up."

[Ragnarok]

There's always the option of having your own gold/silver coins melted/made into jewelry, or traded in for it, or having your own old jewelry recast instead of shipping it off to C4G for a pittance.

That said, gold jewelry is already the highest-premium way to buy gold imo. The markup on gold chain is stupendous. Back when gold was 300 frns per ounce, I bought a 14K gold chain at a mall store during the Christmas season. I had a coupon for 50% off, and the store was offering an additional 20% store discount on the chain I wanted. The price was still 300 frns even after the discounts were taken!

I took the piece home and weighed it on the trusty triple-beam. 6.5 grams gold content. Equivalent price per ounce: 1435 frns!
So I am STILL waiting to break even on the gold in that chain (but I don't think I'll be waiting much longer!)

I'd assume the premium would come down somewhat as the gold price goes up in order to keep jewelry as affordable as possible, but eventually real silver and gold jewelry will simply become unaffordable for most.

R.

[dumpster]

well for one gold jewelry,, iis not a big chunk og gold ,, it is the work the detail,

in a fine piece of gold jewelry maybe it is 20% gold the rest this and that

so theprice of gold will not be a big part of the price .

who will buy computors when silver is 200 an oz ,, every one will because the silvr is small in comparison to the total unit :fish

[dumpster]

the higher the cost of jewelry,, the more the folks =will buy,,

its a status thing.. bought my favorite person a dabble for $20,000

and whats this if gold over 2000,, lol :rocket_hor

[milehi]

My daughter is graduating high school this year, so we did the class ring thing. It hurt to know how many silver ounces I could could've picked up for the $250 I spent on the sterling ring. She's aware of PM's and stacks 10% of her paycheck so she know as well, but she's very involved in school and she's only graduating once.

Nearly all the kids were getting sterling rings, and the cost of a generic gold men's ring was a grand.

[Ragnarok]

Sad to think of how much heirloom gold has gone to the melting pot through outfits like C4G.

Otoh, my sister had some old gold rings from her grandmother recast into another beautiful ring that she now wears. Perhaps we will see more of this occurring, as there's lots of "non-heirloom" gold out there already that could be remade/repurposed/ into something new and in current fashion.

R.

[kregener]

I would not.

If you take the "L" out of jewelry...well, you get the idea.

[gunDriller]

I would not.

If you take the "L" out of jewelry...well, you get the idea.


i always wondered about the linguistic origins of the word "Jewelry".

i once worked for a Jewish manager from New York. he was not an honest person. his wife had a chain of jewelry stores in the Silicon Valley area.

my father also bought a load of synthetic sapphires when he lived in India. he was a consultant for the forest industry. when he tried to sell his sapphires, he received lots of flak and threats from the Jewish jewelers.

[SLV^GLD]

I inherited some gold rings from my deceased father-in-law who had in turn received them through family lineage. Before the MIL gave them to me she had them appraised. I was shocked at the amount they appraised for relative to the spot value of the gold content. Apparently, older style settings and hallmarks of design are more valuable then the medium within which they are performed.

[bellevuebully]

Girls getting married in the next few years will be getting a Lifesaver sucked down to size. lol.....hey baby, what colour you want?