With gold over $1150 per Ozt, I wonder what other jewelers are
experiencing? The demand that is driving up the price is not coming
from jewelry, but what is the effect on jewelry demand? I have had
some customers who thought they could not afford gold jewelry who
were surprised that the price was not higher, and bought. Also have
had customers who were totally unaware of gold prices and did not buy
due to sticker shock.
One thing that I find very strange is that these record prices are
not being especially sensationalized in the news media. Advertising
for gold as an investment or to buy old gold for scrap is keeping
the value of gold in the media, but it does not seem anything like
the overall interest that went with the surge in gold and silver
prices in 1979-1980. Back then it seemed to boost jewelry demand. In
general the advertising messages don’t seem to be saying anything
that they were not saying several years ago.