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This article has
been updated and is current as of April 1 2011
Precious Metals are in Demand --
Why Jewelry Prices have
Increased Dramatically
Our world is growing
every day. Not the planet, of course -- but technology
has made it possible
for people living just about anywhere to live better,
healthier more comfortable lives. Growing
markets and manufacturing centers have raised the
standard of living worldwide. Of course,
it hasn’t helped everyone, but it is great to see people
in China, India and many other countries
becoming more prosperous.
People buy much more than
necessities like food items and basic clothing when they
can afford
to do so. Everyone likes nice things. Luxury items --
high end cars, designer clothing, travel and
jewelry have become status symbols in these up and
coming places just as they have been for
many years in the United States and much of Europe.
The cost of finding and
recovering these metals - mining - has become very
expensive and
at times even cost prohibitive. The machines required to
do this work burn large amounts of fuel.
The cost of diesel fuel and gasoline is very high and is
expected to go even higher. Increased
demand in countries with growing need for fuel combined
with uncertain conditions in the
regions where oil originates has caused these soaring
fuel costs.
Many mining companies
have suspended operations due to high fuel costs.
This cuts the available supply of gold, silver and
platinum.
Increased demand for
precious metal has risen along with this economic
growth.
There are many uses for these materials other than
jewelry making. Platinum is used
in automobile production; there is platinum in every
catalytic converter. Gold is the
best conductor of electricity; it is used extensively in
the electronics industry.
Silver is unsurpassed as a conductor of heat and is one
of the best reflectors known.
It is in great demand for manufacturing many of the
things we use every day.
And as the prices go higher, speculators
hoard precious metals, which just adds fuel to the fire.
Precious metals are a
limited resource. They truly are rare and the increased
worldwide
demand drives prices higher. It is a classic example of
the supply and demand principle.
Seven years ago, silver
was less than $5.00 an ounce. As I write this, the ounce
price is
$37.72. The price of gold has increased just as
dramatically in the same
time period; today the ounce price is $1418.00; platinum
is $1718.00 per ounce.
Jewelers don’t have it
easy these days. The raw material they use costs much
more,
and it is becoming hard to carry stock – the investment
is in many cases prohibitive.
Many jewelers are using
copper in their designs. Copper has also seen dramatic
price increases, but is still very affordable. Combining
copper with sterling takes
advantage of their contrasting colors, which can be very
attractive.
Leather, ribbon and
rubber cords are being used in place of chain to hold
pendants.
Many newer styles are
lighter, made with thinner stock. Pierced designs and
filigree
are making a comeback. These techniques produce large
size pieces with lower weight.
Beaded styles are more
popular than ever. Many of them use very little precious
metal --
gold and silver beads are hollow, so they give jewelry a
“big” look with little weight.
Of course, people will
always wear
jewelry. Gold and silver will always be the
materials
of choice. Higher prices prompt creativity; innovative
design can help keep pendants
and earrings affordable by using these limited resources
sparingly. Less can be beautiful.
For information
on the care and cleaning of sterling and 14K, please visit this article:
Jewellery Care
Article
written by Robert Edwards ©2008. Updated
4/1/11.
Robert is a jeweler and
metalsmith, and is webmaster of
http://www.jewelry24seven.com.
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