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Consumers Snap Up Gold & Silver Jewellery

GoldCore's picture




 

 

Today’s AM fix was USD 1,469.50, EUR 1,118.68 and GBP 944.59 per ounce.  
Yesterday’s AM fix was USD 1,454.00, EUR 1,108.74 and GBP 939.09 per ounce. 


Cross Currency Table – (Bloomberg)

Gold climbed $20.60 or 1.42% yesterday to $1,472.60/oz and silver finished nearly unchanged -0.08%.

Jewellers across the world are seeing a surge in jewellery purchases because consumers are taking advantage of the price drop and purchasing investment pieces that will grow in value over time.

In the USA with Mother’s Day approaching this weekend, consumers like Whitney Court who would normally buy flowers instead wants to purchase something that won’t wilt: a silver necklace. 


Silver in USD, 6 Months – (Bloomberg)

“I’d rather spend a little bit more money and get her something she can keep than something she’s going to throw away in a week,” Court said of her present for her mom on May 12th.

Over 1/3 of Americans plan to purchase jewellery as a Mother’s Day gift, according to a National Retail Federation survey, the highest percentage in the survey’s 9-year history. U.S. jewellery sales have increased from 67.3 billion in 2011 to $71.5 billion in 2012.

In Asia, families often use gold jewellery as part of dowries.  Chinese consumer Fang Yan made the journey to Macau to purchase gold jewellery but discovered all the large chunky bracelets were sold out.

Retail sales of gold across China increased three times in mid April when the price fell, according to the China Gold Association.

 Gold in USD, 6 Months – (Bloomberg)

In the Middle East, from Dubai to Qatar, locals and expats have been buying on the dip.

According to The Telegraph there are rumours that retailers have removed stock from the shelves in order to wait until the value increases.

Since gold bars are in short supply in the UAE investors are purchasing jewellery as a substitute.

Even though cities like Dubai and Qatar are renowned for their vending machines filled with gold bars, one consumer wrote to a Dubai newspaper that they were struggling to find gold.

“When my husband went to the Sharjah Gold Souq, known as Central Souq, the salesmen there said that they don’t have any in stock,” she commented.

“He also told my husband not to waste time, as no one is selling gold, even though they have it in stock. My husband checked in a couple more shops and they all said the same thing.”

Since the drop in value, some jewellery retailers in the Doha gold market have said their business has doubled.

An expat blogger Annabel Kantaria commented, “Someone wrote to another newspaper claiming that all the shops are in it together,” she said. “That's all I've heard. I find it hard to believe they will have run out - it’s far more likely that they are refusing to sell.”

Although these are only rumours price collusion in markets is not a new concept.

NEWS
Gold slips after 1 pct gain; ETFs at 4-year low – Reuters

Late Bets Rouse Gold To a One-Month High – Wall Street Journal

Heavy drop in gold fund for man who made billions in 'big short' – Irish Independent

China Dowry Filled With Gold Signals Gains for Jewelers - Bloomberg

COMMENTARY
Gold rush in the UAE as expats take advantage of plunging prices – The Telegraph

Fun With Fibonacci Flashbacks – Zero Hedge 

John Paulson on his gold losses: What losses? – Market Watch

Gold Daily and Silver Weekly Charts - Cap and Trade Redux - Gold Flowing From West to East – Jesse’s

Emancipation Of Physical Gold From Paper Gold Is At Hand – JS Mineset

For breaking news and commentary on financial markets and gold, follow us onTwitter.

 

 

 

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Thu, 05/09/2013 - 21:42 | 3546824 WTF_247
WTF_247's picture

Jewellry is perhaps the shittiest way to invest in gold, silver or platinum UNLESS you buy real high end designer (Tiffany is low end high end).

On average you will get scrap if you are lucky - that is gold less about 30%.  most jewellry is bought at a significant premium.  Meaning the gold is worth $400 per ounce but you buy it for $1500 as a jewelry piece.  Only high end or vintage actually holds its value - go to auction for those.

Thu, 05/09/2013 - 21:06 | 3546732 Common_Cents22
Common_Cents22's picture

Do you think launching home gold buying parties might be a good idea?   Pay cash and give the host a few bucks for getting people to come?

Anyone have resources on how a guy verifies jewelry to be authentic gold??

Might be a bettery way for cheaper acquisition and a better deal for the people instead of going to pawn shops or online gold buying services  which are notorious for ripping people off.

Thu, 05/09/2013 - 18:07 | 3546298 deerhunter
deerhunter's picture

At this point I believe keeping your fiats other than montly expenses for convenience of bill paying in a bank or credit union is very similar to wearing bling on any big city metra or subway system.  And the fact that at least in a strong arm robbery I get to meet the thief face to face gives me a chance to even my odds.  I can't believe it happened here, my neighborhood, our city etc. etc. etc.  How often do we hear that?  I can't wrap my brain around a five to one or worse dollar devaluation but what would we do as individuals?  Go burn down city hall??? Go burn down your bank or credit union?  Go picket at the state capitol?  Really?  I think when thinks get interesting is when the civil servants quit getting paid.  Look at Madison WI when they were asked to contribute a small percentage to pay for their health care and retirement.  Try to destroy the capitol building all WI taxpayers paid to clean up???  This is about to get interesting.  Don't know when and don't know what that last straw will be.  It may not be a black swan as it may just be a hummingbird.  When it comes you best be ready. Have a great weekend all.

Thu, 05/09/2013 - 17:18 | 3546140 Never One Roach
Never One Roach's picture

Stocks = too high;

 

PMs and oil = too low;

 

 

Thu, 05/09/2013 - 17:02 | 3546096 Jack Sheet
Jack Sheet's picture

Puncture pierced gold prepuce (or scrotum) rings ? Lighter and more discreet.

Thu, 05/09/2013 - 16:48 | 3546045 RaceToTheBottom
RaceToTheBottom's picture

My Silver Bullion necklace is on order. 100 OZ will be pretty heavy but it is an investment

Thu, 05/09/2013 - 18:11 | 3546309 Sofa King Confused
Sofa King Confused's picture

I wonder if it's just a coincidence that jewelry and jewels start with the same three letters

Thu, 05/09/2013 - 16:21 | 3545979 zipit
zipit's picture

Is this blog post an advertisement or an article?  Because it sounds like an advertisement.

Thu, 05/09/2013 - 15:37 | 3545750 besnook
besnook's picture

asian jewelry doesn't have the mark up it does in the west. the price is close enough to spot to make it a good buy.

the market in the usa is in junk jewelry which can be bought at less than weight value plus gems if you know where to get it.....and it won't be confiscated.

Thu, 05/09/2013 - 15:30 | 3545733 Banjo
Banjo's picture

I'm buying jewelry so I can sell it back for pennies in the dollar at the "we buy gold" shops after TPTB crash the economy. Think Greece, Spain, Portugal et el..

 

Thu, 05/09/2013 - 14:23 | 3545395 m0w0g
m0w0g's picture

I am a goldsmith and owned and opearated a retail jewelry shop for 12 years. If you can buy jewelry by weight, (as in gold souks in Asia) this article's premise might be accurate.

However, retail jewelry in the US is usually marked up at least double over wholesale. What you buy for $1000 today can't be turned back into cash for anything over $200 even if you're lucky enough to get something over melt value. The metal is only a small part of the total price in the store; there's labor, carrying costs, other overhead, etc.

Diamonds and gemstones, same story.

You SHOULD own gold and silver bullion (paying the lowest premium you can find) because they are and always will be real money (unlike the paper fiat we pretend to pay and be paid with). Just don't buy it from a jeweler.

Thu, 05/09/2013 - 14:43 | 3545485 OutLookingIn
OutLookingIn's picture

Gold jewelry in the US is only 14crt at best. Whereas in the east, especially in India its at least 22crt and most times at a full 24crt. Big difference when buying jewelry for wealth protection.

Thu, 05/09/2013 - 14:17 | 3545369 fourchan
fourchan's picture

STRONG SALES DRIVE DOWN GOLD PRICES

 

THE PAPER MARKET IS A RIGGED JOKE, GET YOUR PHYS BEFORE CHINA DOES.

 


Thu, 05/09/2013 - 14:16 | 3545361 OutLookingIn
OutLookingIn's picture

Bad 'money' (paper) drives good 'money' (gold) into hiding (hoarding)

Lets face it, if you have an ounce of gold in one pocket and a little over 1400 bucks in another pocket - which one would you spend first?

Thu, 05/09/2013 - 17:13 | 3546127 akak
akak's picture

  

Bad 'money' (paper) drives good 'money' (gold) into hiding (hoarding)

More Gresham's (so-called) Law nonsense.

In reality, absent the force of government-imposed legal tender laws, it is exactly the opposite --- good money drives out bad money.  It is only when coercive laws mandate that bad money be used, under penalty of imprisonment, that (government-issued) bad money can drive out the good.

Thu, 05/09/2013 - 16:55 | 3546073 DosZap
DosZap's picture

Lets face it, if you have an ounce of gold in one pocket and a little over 1400 bucks in another pocket - which one would you spend first?

 

Sure not the Au.

Thu, 05/09/2013 - 14:11 | 3545334 Bay of Pigs
Bay of Pigs's picture

Fucking jewellery? That's the headline?

LOL....GoldCore reaches a new all time low pushing propaganda and bullshit.

Thu, 05/09/2013 - 14:28 | 3545375 akak
akak's picture

Admittedly, it is a rather shallow and trivial 'article', but I think it is still important to remember that much of what passes as "jewelry demand", particularly in Asia, is in fact investment demand for gold.  For billions of people in the Orient, the Indian subcontinent and the Middle East, jewelry is simply the preferred physical form in which they traditionally hold their gold, just as it is coins and bars in the Western World (all biased propaganda from the so-called World Gold Council to the contrary).

Ignoring Asian gold jewelry, and attempting to separate it from gold investment demand, would be as erroneous as labeling all Western gold coins as mere "collectables".  It is fundamentally not the form of the gold that matters when the real goal is putting one's savings into gold.

Thu, 05/09/2013 - 14:47 | 3545465 Bay of Pigs
Bay of Pigs's picture

It was the Mothers Day nonsense that really bothered me akak. I'm so sick of this trivial garbage being thrown around like it actually means anything.

Hey GoldCore, you ever look behind the curtain at the COMEX and LBMA? Or maybe focus on what the FED, UST and JPM are doing to suppress gold and silver prices?

Edit: And speaking of that, Ted Butler has finally taken the red pill.

http://www.silverseek.com/commentary/worst-regulator-possible-11571

Thu, 05/09/2013 - 14:56 | 3545543 Gringo Viejo
Gringo Viejo's picture

@ Bay of Pigs Followed TB for quite a few years beginning in the early 2000s. Finally had to cut him loose due to his pollyannish view of the CFTC and in particular, Chilton. Now that the entire western financial system has been revealed as one, gigantic, naked fraud, his naivette is even more painful to watch.

Thu, 05/09/2013 - 15:09 | 3545599 Bay of Pigs
Bay of Pigs's picture

He has thrown the towel in....and yes, many years too late.

Thu, 05/09/2013 - 15:54 | 3545868 Fuh Querada
Fuh Querada's picture

reading him back in 2009 you would have thought that the sun shines out of Gensler's and Chilton's a**es! And his warnings of IMMINENT position limits in silver.

Thu, 05/09/2013 - 14:02 | 3545291 Gringo Viejo
Gringo Viejo's picture

How much gold is out there relative to gold plated Tungsten?

Gonna be interesting.

Thu, 05/09/2013 - 14:07 | 3545319 Fuh Querada
Fuh Querada's picture

now there's even an incentive to tungsten-core fractional-ounce coins!

Thu, 05/09/2013 - 14:00 | 3545281 Fuh Querada
Fuh Querada's picture

They told my husband to fuck off!

Thu, 05/09/2013 - 13:52 | 3545255 yabyum
yabyum's picture

Where your weath around your neck, people have bee doing it for centuries. Why not now!

Thu, 05/09/2013 - 14:23 | 3545394 cynicalskeptic
cynicalskeptic's picture

Been on a NYC Subway?   Not a wise idea.

Thu, 05/09/2013 - 12:53 | 3545040 wcvarones
wcvarones's picture

Can't get silver bullion in San Diego!

Thu, 05/09/2013 - 20:47 | 3546700 beentheredonethat
beentheredonethat's picture

Exactly! Two shops have some but their premiums are high. You have to find them. La jolla.

Thu, 05/09/2013 - 12:32 | 3544949 MacroAndCheese
MacroAndCheese's picture

More propaganda from a gold merchant.

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