Gold jewelry continue to go strong
When it comes to selling gold jewelry, retailers are well aware of the biggest challenge right now: price. But at the counter, it's a discussion of "romance" and "investment," "beauty" and "value" that will draw shoppers to the allure of gold jewelry, from statement-making necklaces and classic hoop earrings to fashionable, saleable stacking and layering designs.
The question of whether or not gold prices would hit $1,500 per ounce this year proved to be a major topic of debate during the summer's Las Vegas jewelry shows, where jewelry designers discussed the metal's $1,200-plus price and the new ways that they have been adjusting to the pricing challenge and consumers' tastes.
Jewelry Design trends
Jewelry Design measures intended to lighten the weight—and thereby lower the price—of gold jewelry continue to go strong, as exemplified in the use of openwork in everything from three-dimensional designs to link necklaces and bracelets. Another cost-conscious move is the trend toward diminutive designs, from thin rings to small, delicate pendants, all of which can be stacked and layered with other fine jewelry or fashion pieces. Also popular right now is two-toned jewelry, especially yellow gold accented with oxidized sterling silver, a signature look for designers such as Armenta, Yossi Harari and Arman, among others.
Price points
After dipping in January, gold prices over the first six months of 2010 experienced a steady rise. In late July, the metal was trading at just over $1,240 per ounce, having risen nearly $200 from earlier levels in the year. Reports from Kitco and ScotiaMocatta released in May revealed that gold prices are expected to head northwards on a "medium-term basis," reaching $1,338 to $1,550 levels. Analysts cited in the reports predict that investor desire for physical gold will remain strong, which will in turn support higher prices.
Gold demand
In U.S. dollar value terms, total identifiable gold demand declined 9 percent for the first quarter of 2010 over year-earlier levels, with demand remaining soft in the United States, but rising in China and India—where it was up 291 percent in tonnage terms. In addition, signs of recovery for gold demand have been seen in Turkey and the Middle East, finds the World Gold Council (WGC) Gold Demand Trends report published in late May. The report states that economic recovery in Europe and the United States is expected to add to global jewelry demand as retailers with whittled-down inventory levels begin to restock once again. A change of guard at the WGC might be another move to help re-invigorate the gold market, with Diamond Trading Co. veteran David Lamb taking on the position of WGC managing director of jewelry this July.
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