Jewelry And Live Price Of Gold
More than half of demand for gold is from jewelry. The biggest demand comes from countries like the United States, China and India. Some parts of the world still use this precious metal as a form of currency, measure of wealth and an important gift. This demand for gold drives the live price of gold up.
Click here for price of gold
Price Of Gold Influences Jewelry Consumers
It's important for consumers of jewelry to understand that the changes in price of gold influence jewelry production. Lower live prices of gold are good for consumers for two reasons. First, gold jewelry becomes more affordable and jewelry makers are able to get a good deal. Second, lower live prices of gold are good for our surroundings. When the live prices are lower, there is less incentive for gold mining leading to less production of toxic waste and minimal mercury pollution.
High Live Price of Gold Leads to Less Gold Jewelry
When the economy took a downward spiral between 2004 and 2011, wary investors decided to put their money in gold. Demand for gold also increased among private investors and central banks who considered it to be a safe haven. Consequently gold became expensive and less of it was used to make jewelry. Greater demand for the precious metal coupled with reduction of gold use by jewelry manufacturers changed the dynamics of the gold market.
Investors Lead To High Live Prices and Less Jewelry
Using gold to store wealth is not new. Ancient civilizations used gold as a currency. However, these bars were too heavy especially when travelling for long distances. It was easier to wear on one's wrist or around the neck. This is how gold jewelry came about as a convenience means of storing wealth. People still use it to store wealth today because the jewelry is liquid and can be converted into regular currency. Individuals also sell their gold jewelry. This could be antique jewelry that has been passed down during generations or making new jewelry from bars of gold. Most customers would prefer the antiques since they are environmentally friendly as no mining is involved. When the jewelry is sold when prices are high, they make more profit. And unlike traditional currency, gold cannot suffer collapse in value and it is not easy for governments to create.
Low Live Price of Gold Means More Jewelry
When the economy began improving in 2012, investors and banks stopped buying the gold and jewelers could now afford it. Gold regained its major role of manufacturing jewelry, about 60% of the precious metal is used for jewelry making. For this reason, consumers of jewelry can influence how gold is obtained by demanding environmentally friendly gold. There is growing confidence that economy will stabilize internationally before 2020. A good sign is investments banks cutting forecasts in gold.
Global prices of precious metal like gold are expected to continue growing, according to Yahoo Finance. The increase will be driven in part by the sale of jewelry and the uptake of the precious commodity by developing nations. This demand is likely to increase live prices of the gold.