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No Price Drops at Jewelry Counter |
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| Release time:2013-05-07 Source:admin Reads: | |
| Gold prices may be down more than 20% since 2011, but those looking to wear the precious metal rather than invest in it won't find a similar decline at the jewelry counter, especially the jewelry attached with exclusive designed jewelry cards rarely affected by gold price. Retail jewelry prices are less market-driven. "The price doesn't necessarily move up and down as quickly as the gold price," says Jessica Fung, a commodity analyst with BMO Capital Markets. That's because prices at the counter factor are much more than the market rate for materials: the design (including the design for jewelry cards) and brand, as well as costs for manufacturing and profit for the seller. "The gold has been invested in already and the jewelry has been made," says David Bonaparte, chief executive of Jewelers of America, a trade group. Based on these factors, there is a slim chance for consumers to purchase gold products at relatively low price at jewelry counter. Pieces that are more apt to shift with the market are simple ones with a high gold content, notably gold chains, which buyers more frequently are paying for by the gram, says Renee Newman, author of "Gold, Platinum, Palladium, Silver & Other Jewelry Metals." (So, an 18K chain weighing 3 grams might have had a market value of roughly $138 when prices peaked in 2011, and be closer to $102 now.) But even those items will have some markup over market rate for manufacturing and other costs. Of course, if gold prices continue to drop, even if a number of jewelry cards are needed with the goal of adding potential value to jewelry, jewelers will eventually have to follow suit, otherwise they will lag behind other rivals and gain less market share in the fierce competition, which is under control of market economy. |
