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Effect of High Gold Prices on Jewellery Trend
| Gold Prices in 1 Year
Gold hit an all time high on Tuesday, climbing past the US$1750 per ounce, up US$150 from $1600 when we blogged on this subject just three weeks ago. This sharp rise has attributed from the fears of rising inflation and the debt crisis in Europe. Gold is traditionally seen as the ultimate "safe-haven" commodity, with investors snapping it up during periods of uncertainty.
How will this affect consumers? Well, according to an article reported early 2011 in www.jewellerynetasia.com
"the increase in the cost of gold has meant that many jewellery manufacturers have reduced either the amount of gold or diamonds, or both, they use in their products, in a bid to maintain price points."
"We have seen clients putting in demands for smaller diamonds of lower qualities," said one diamond company executive. "That is clearly a result of the need to cut costs. It is obvious that rising gold prices are forcing a change in the composition of jewellery. We have seen some downsizing in the diamonds being requested."
This is unfortunate, because low quality diamonds have no brilliance and therefore should be avoided at all costs. It may be cheaper now but in the long run it will prove to be a false economy. There has been a huge decrease in gold jewellery sales in USA, Europe and Australia; and as a result jewellers who want to survive are constantly needing to reinvent themselves.
For engagement and wedding rings, gold will still be the preferred metal. Gold will always have a selling value.
In fashion jewellery, the latest consumer trend, based on our observations from the last few international jewellery fairs, is the use of other metals instead of gold: Silver, stainless steel, tungsten, titanium wood, sea shells and plastic have become more fashionable out of necessity.
For ladies fashion jewellery, silver is the metal of choice. Silver has becoming more fashionable and is much cheaper than gold jewellery. Silver, with the same look as white gold, is another reason that makes silver more desirable.
We have seen this trend and we have progressively introduced a range of Miabelle silver jewellery last year with much success and we will be launching a new line of silver jewellery featuring coloured stones of Amethyst, Lemon and Smoky Quartz, White and Yellow Sapphire, Kunzite and Blue Topaz.
Next time when you want to buy quality fashion jewellery, give silver a look.
For those who want to know "Why does the price of gold keep rising?" click here