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Wow! Look at gold prices!


#1

The price of gold just passed $700 ($700.70). Wow! If it keeps
rising, I honestly don’t know how I’ll be able to stay in business
without either changing the style of my jewelry drastically,
switching metals, and/or changing the nature of my one-of-a-kind,
high end gold and gemstone line! This is very disconcerting… to say
the least.

Beth


#2

Beth,

I’m not sure if you watch it all the time but gold was at about
$660/oz one year ago. Now it’s up to $700. That’s only about a 6%
rise in cost. So if you were able to cope with gold prices last
year, you should still be able to cope with them. Of course if you’re
comparing it to 3-4 years ago then you really do have an issue.

Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC
1780 Massachusetts Ave.
Cambridge, MA 02140
www.spirerjewelers.com


#3

And to think, I remember $.70/oz silver and $35/oz gold and I am
still in business and plan to be so for a long time to come.

Disconcerting? Maybe. Just business evolution in action. I am quite
hard nosed about the idea that if we can’t adapt and change, we can
only expect to be left behind.

I have been having a wonderful time watching a student evolve from
killing herself on the show circuit to re-inventing herself and her
designs and landing a contract with QVC. Yes, new problems, different
markets, but still a successful business and now she is off on a 3
week vacation overseas.

How bad do you want to stay in business? That is the question to
answer.

William E. Churlik
www.earthspeakarts.com


#4

Historically when the price of gold rises, the public buys more gold
jewelry. A rise in gold prices couldn’t have come at a better time!
'Tis the season, y’all!

Woohoo!


#5

About three days before gold went over $700, I asked my wife, “With
the season approaching, when will gold go over $700.” Got my answer.

Richard Hart


#6
I'm not sure if you watch it all the time but gold was at about
$660/oz one year ago. Now it's up to $700. That's only about a 6%
rise in cost. 

You’re right, of course, Daniel. I guess it was the psychological
impact of seeing that 700 that threw me.

Then again, if the price rises another 6% more in the coming year,
it will mean a 12% increase in two years, not to speak of whatever
percentage it rose by the year before.

Just looked it up. In September, 2005, the price was about $445! FAR
more than a 12% increase.

Beth

P.S. Doc: I sure hope you’re right.


#7

Alot of bullion market analysts/traders are pondering the range of
$740ish by Christmas time. Many more are talking $800ish by spring.
A smaller segment is preaching $1000 or more by spring. And of
course, there are always those crying that ‘the sky is falling’, and
$2000/0z is eminent, but those cries are not built on solid
foundational data, but mere speculation, fear-mongering, and greed.
Todays high was in the range of a 26 yr high. And all the foundation
is there for the market to keep right on going up for a while.

The subprime mortgage scenario is placing alot of pressure on the
market to keep heading in an upward tick. USA investors in the
subprime market are looking for safety so they are bailing out of
stocks and bonds as we speak. Addionally, as the Fed Reserve pours
dollars(freshly printed and borrowed) in, to attempt a rescue of the
subprime market, this creates a continual devaluation of US
currency(ongoing for a few years now and growing faster), against
foreign currencies, which means inflated prices on every single item
you buy that is imported from another country. ( includes gas,
clothing, electronics, automotive, just about anything thats not
stamped “Made in the USA”. Also foreign money invested in US mortgage
business are jerking their cash out and placing it in safer markets
such as precious metals. This in itself will create a strong upward
trend. If you are planning any larger purchases for inventory, I
don’t suggest hesitating as the general consensus among active
bullion traders is that its probably never coming back down again.
But this is a correction that is sorely long overdue. Many feel the
gold market has been artificially held down by the large financial
powers of the world for a number of years anyway, and has now reached
a point where noone can hold it back.

One way to profit from such a strong upward market is to start
purchasing scrap, or old, broken, well-worn jewelry and silver coins,
etc, off the street. Its amazing how many people have purchased
Krugerands, large silver ingots, etc as "chicken little’ investments,
and now are wondering how to get their money back out of it. Little
old ladies often will have stacks of Krugerands big enough to choke a
horse because hubby encouraged the purchase as part of a retirement
plan gone awry- knew where to buy it but not an inkling where to sell
it. Now the widow is stuck with several thousand $ worth of coins
that she can’t even buy bread or gasoline with, and she would be
happy to sell for less than the current market value. The more TV
news talks about the high gold markets, the more people decide that
now is the time to sell. An excellent source for diamonds, etc too.

Ed in Kokomo