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The Price of Gold is over 900$


#1

So now gold is over $900 an ounce! Are those of you who were
sanguine when it went over $800 still feeling the same way?

Beth


#2

I may be talking through my hat, but my bet is that it continues up
to $1150 to $1200 then falls back to around $700 or $800 by the end
of next year.


#3

Already this year my sales of gold are up. The higher price seems to
be bringing customers attention back to it. The other aspects I have
noticed is that the orders are for the higher karats I offer (18kt &
22 kt), and in the 18 kt it is the yellow gold being requested, as
opposed to red, green or white gold. So I am still optimistic.

Michelle
Decolletage Jewels
ChainWeavers.com


#4

I can’t believe how high gold is! I don’t work with it often and last
time I ordered it the price was around $495. I ordered 22k yesterday
and about had a heart attack. I recently read an article stating that
if we adjusted the last gold hike from the 80s for inflation, the
current cost would be around $2,100/oz. Still doesn’t make me feel
any better.

Tammy


#5

The only sanguine feelings I have are aimed at the crashing value of
the US dollar. On the bright side though, it means only good things
in relation to the pound, franc and yen…at least for those whose
wealth is tied to those currencies.

Y’all come and buy our stuff! I can’t promise we’ll learn to speak
French or Japanese, but we’ll have a go at English!

Doc


#6

We certainly aren’t feeling sanguine, but we are not panicking.
Business is slow except for repairs, appraisals and
remount/restyling. Most of our customers are not really bothered by
the price of gold except as a "gee whiz’ type of thing. Some are
actually buying because they percieve greater value in jewelry now.
If we act like it’s a negative thing, then it will be! Thank
providence for the repair business and David Geller!

Peggy Wilson
on the Outer Banks of NC
where even the fish look like they’re cold


#7

I think we can bank on a downturn.

But…we’re going to have to look harder for opportunity. Service
will become even more important, be it repair or custom work.

On the other hand, per piece dollar profit (as opposed to
percentages) will increase if we can maintain the same margins.
Question is will we, should we? While your volume may drop, if
handled correctly profit may go up (such an optimist I am). Do this
by avoiding new debt and selling down your inventory where you can.
Push special order rather than lose a sale.

What I hear thru the grapevine is that special order is where its at
for a great many jewelers. Sales of existing jewelry have been
miserable for some. Yet others are doing very well.

The price gap between gold and platinum has been narrowed. Am I the
only one who sees possibilities here?


#8

I have found a great way to maximize one’s stock of gold is to offer
to buy it on sites such as Craig’s list then process it into a usable
form. I have no complaints and the people getting rid of their broken
jewelry don’t mind clearing it out of their drawers, etc.for a return
in cash. You simply advertise a price per gram or ounce and responses
seem to flow in. I have the responder email me to separate email box
set up for the purpose of screening, then meet them at a public place
after I call them on the telephone # I ask for on the Craig’s list
posting. I have also gotten some repair work this way on pieces too
valuable or collectible to melt down or refine into grain/ingots for
milling. My cost is controllable this way when factoring in the time
it takes to respond, line up buying ( into an afternoon of scheduled
appointments per week or as frequently as is necessary), and then
processing the scrap into both 14 kt ingots and 24 kt. grain. ( i use
very little 14 kt. and tend to send it off to my metals dealer for
credit- which is another way to increase my bottom-line profits as my
dealer gives a discount on crediting refining to my account rather
than having it translated into a cash pay out). So there are some
ways to save, and yes 900 Dollars per ounce is disgusting and begs
use of more creative metals and materials, like mokume-gane in which
the perceived value is higher than the sum of the materials.RER


#9

I’m definitely not sanguine about the price of gold being over 900$
but this does make me grateful I am working for a business instead of
running one.

It also makes me rather apprehensive as far as my search for work in
NE Texas.

Rene Howard


#10
Already this year my sales of gold are up. The higher price seems
to be bringing customers attention back to it. 

Think how excited they will get when it hits $1000/ozt! Unless
something else much more news-worthy happens. So we had all better
pray that Britney Spears doesn’t fart in church that day or the price
of gold won’t make the headlines.


#11

When I was in school gold was @$54 /oz. and most local jewelry stores
were selling some gold, but more, a lot of Krementz gold filled type
of jewelry. Gold went to @$150 or so in the 70’s and “no one is going
to buy jewelry” was heard a lot. When gold shot up to the $400/oz.
range, and later higher I heard the same thing, but the funny thing
is: jewelry stores pretty much quit selling the GF stuff, and
customers began purchasing a LOT MORE GOLD jewelry. Increasing prices
are painful, and make things difficult for us fora while, but in the
long term they are much better for perceived value than plunging
prices. I’m not saying gold prices are not a concern, but past
increases have led to increased interest. An possible economic
slowdown concerns me more than gold prices, as what we sell is, after
all a luxury product.


#12

Working as a contractor also, I have started sending some work back
with estimates, with $900.00 per oz. beside it. Prices of our work
and labor has to be increased. Did anyone notice the price of Silver
and Platinum? Im working on revising my price sheet right now.

Johneric


#13

i am not old enough but, does anyone remember what things were like
for goldsmiths when the US dollar had gold behind backing it up can
anyone post on what it was like ? i too think gold and other metals
will continue to go up i think the day traders and speculators are
driving the price as well as the mortgage slow train wreck monkey
#!!**%$ i am concerned !

i tell folks when they ask me if gold is a good investment, to
remember that you have to pay to buy it and pay to sell if you buy
stocks. plus even buying from a refiner you pay the "plus spot"
overage and shipping so you are forced to wait untill the price
increases plus, for a profit.

the power buyers may be working with different rules and or schemes ;
this inflated gold situation does hurt us who are in the jewelry biz
most of are making a living and the wall streeters are concerned with
amassing wealth and power.

lastly preying upon & upsetting the housing market is the ultimate
cause of these high gold prices. what has occured over the past
5-7years to under cut the economy is financial genocide of regular
working people and those who have profited are on the same level as
child molestors because thier profits have tossed children and
honest folk into the street

goo


#14
Already this year my sales of gold are up. The higher price seems
to be bringing customers attention back to it. The other aspects I
have noticed is that the orders are for the higher karats I offer
(18kt & 22 kt), and in the 18 kt it is the yellow gold being
requested, as opposed to red, green or white gold. So I am still
optimistic. 

Sure, the 1/2 of 1% who can afford to buy whatever they desire have
their interest piqued by an increase in gold price, but the other
99.5% didn’t really want it that much at $600/ounce, and certainly
have no desire to buy it for 50% MORE money. Those of us with blue
collar and middle management clienteles are wondering how precious
gems and gold could “go out of style” - but somehow, it has. Look at
the people walking down a busy city street or walking through the
local shopping mall - you will see far fewer men and women wearing
-REAL- gold chains, or nice genuine gemstone rings, or -REAL- gold or
gemstone earrings. Costume jewelry is king! The price of gold is
increasing because of external pressures, NOT an increase in demand
by the ‘average joe’ on the street, and it is reducing interest by
the population as a whole in fine jewelry. I am happy for those who
have an increase in business from the wealthy, but I wish that there
was something left for the rest of us.

Lee Cornelius
Vegas Jewelers


#15

Hi Stephen,

I may be talking through my hat, but my bet is that it continues
up to $1150 to $1200 then falls back to around $700 or $800 by the
end of next year. 

I suspect you’re right. Unfortunately, this is not much comfort :-).

Beth


#16

Our customers don’t really seem to care about the price increases of
precious metals. Apparently, the higher cost of one custom made
piece doesn’t really make a significant difference in our customers’
desire for quality or their willingness to pay for exactly what they
want. I am much more shocked at the increase than they appear to be.
Ask again when gold hits $1200 and platinum is over $2000. That might
just make a difference.

It’s the root causes of gold’s price hike – the plunge of the
dollar, the fall of the stock markets, increasing oil prices and
falling real estate values that has me worried about 2008.

Neil, while I almost always agree with you, I must disagree with your
statement as to the price difference of gold and platinum narrowing.
When gold was at $350, platinum was around $600, about $250 an ounce
difference. Now gold is over $900, platinum is around $1570, a
difference of almost $700. It may be narrowing percentage-wise, but
it’s nearly three times the dollar difference from three years ago.
With the higher purity and higher specific gravity of platinum, the
price of finished platinum jewelry has increased at a substantially
higher rate than gold, at least it has for jewelry that I make.
Fortunately, the gross profit has increased correspondingly, assuming
a similar margin. That’s where I see the possibilities for greater
profitability of platinum jewelry.

Dave


#17

Our customers don’t really seem to care about the price increases of
precious metals. Apparently, the higher cost of one custom made
piece doesn’t really make a significant difference in our customers’
desire for quality or their willingness to pay for exactly what they
want. I am much more shocked at the increase than they appear to be.
Ask again when gold hits $1200 and platinum is over $2000. That might
just make a difference.

It’s the root causes of gold’s price hike – the plunge of the
dollar, the fall of the stock markets, increasing oil prices and
falling real estate values that has me worried about 2008.

Neil, while I almost always agree with you, I must disagree with your
statement as to the price difference of gold and platinum narrowing.
When gold was at $350, platinum was around $600, about $250 an ounce
difference. Now gold is over $900, platinum is around $1570, a
difference of almost $700. It may be narrowing percentage-wise, but
it’s nearly three times the dollar difference from three years ago.
With the higher purity and higher specific gravity of platinum, the
price of finished platinum jewelry has increased at a substantially
higher rate than gold, at least it has for jewelry that I make.
Fortunately, the gross profit has increased correspondingly, assuming
a similar margin. That’s where I see the possibilities for greater
profitability of platinum jewelry.

Dave


#18
...but the funny thing is: jewelry stores pretty much quit selling
the GF stuff, and customers began purchasing a LOT MORE GOLD
jewelry. I'm not saying gold prices are not a concern, but past
increases have led to increased interest. 

Hence my optimism.

Any possible economic slowdown concerns me more than gold prices,
as what we sell is, after all a luxury product. 

As we quickly go into hyperinflation, people will begin to understand
that the faster they spend their money, the better off they are.
Since luxury items cost more than staples, and bring the purchaser
some amount of pleasure, we’ll sell more of them.

My 2c (adjusted for inflation)

Doc


#19
but the funny thing is: jewelry stores pretty much quit selling the
GF stuff, and customers began purchasing a LOT MORE GOLD jewelry. 

I think James has hit the nail on the head. In the west, gold jewelry
has had an illusion of value that far exceeds its second hand retail
price. A high market price for gold reinforces the perceived value.
This pretty stuff is more plausibly worth something because of the
materials rather than just a fashion accessory or keepsake. It is my
personal philosophy that the emotional and design aspects of jewelry
are more powerful than the materials. Even when we market diamonds,
the best ads focus on the emotional rather than the material. I think
it probably helps that real market forces make the materials
precious, because precious is what people want in jewelry.

Stephen Walker


#20

Good morning everyone, I receive a newsletter from LiveScience and
it had an interesting article on gold I thought I would share :

Kind regards
Tina - CreatedWithFire