Price of gold and correlation with setting price

[annadragon]

I''ve been watching the price of gold for a while and started wondering how the daily gold market price affects the price of gold settings?
I''m not sure if a custom setting or a stock setting would better reflect the changes. With a custom setting you need to factor in labor/design and stock settings are batched (that''s my assumption) and reflect the price of gold at the time of bulk purchase, so they would only reflect gold prices at the time of the metal purchase.
Perhaps the better question is how gold purchases are made that ultimately affect the price of the setting sans labor, design, crafting, etc?

 

[Stone-cold11]

A very small portion of the total price. Gold alloy usually have a lower content than Pt alloy, 75% by weight for 18K gold and 58% for 14K. When coupled with more intricate designs, it will be even lower as labour cost takes up a much more significant portion.

 

[D&T]

just from one experience I had. I asked for a quote on the same ring when gold was higher, my semi custom mount reflected that, then 6 weeks later, I asked for the same quote and it dropped so in my mind getting custom quotes would reflect the slight change, unless i''m up in the night just my two cents.

 

[Todd Gray]

Date: 6/10/2009 12:04:29 PM
Author:annadragon
I''ve been watching the price of gold for a while and started wondering how the daily gold market price affects the price of gold settings?

I''m not sure if a custom setting or a stock setting would better reflect the changes. With a custom setting you need to factor in labor/design and stock settings are batched (that''s my assumption) and reflect the price of gold at the time of bulk purchase, so they would only reflect gold prices at the time of the metal purchase.

Perhaps the better question is how gold purchases are made that ultimately affect the price of the setting sans labor, design, crafting, etc?

In my experience:

1. Most retail jewelry stores keep a close eye on the price of platinum and gold and will change the price of every item in inventory if a substantial increase occurs.

2. Most retail jeweler stores do not decrease their selling prices if a decrease occurs in the precious metal markets, they are not a stock exchange, they are a jewelry store and prices are based on what the market will bear. The argument for "price of the day" only seems to apply to increasing the price. I''m explaining the practice, not defending it

3. The price of custom and designer settings is largely based on market recognition of the designer, distinct design elements which may be copyright protected and not so much on the actual value of the material used in the creation of the piece. One designer that we work with recently increased their prices substantially after precious metal prices decreased - this increase came on the heels of a substantial increase made in conjunction with a market increase in the price of precious metals about six months before... The explanation I was given is that the increase was due to increased design costs and advertising expenditures. My response was to start promoting a competitive line that is priced more reasonably. Consumes have a choice when it comes to the jewelry they buy and as a professional diamond and jewelry buyer, I am still a consumer.

4. Attempting to argue "price of the day" with a jeweler when having a custom ring made is generally futile. The odds are that unless they are buying casting shot today, the price of the metal used in the ring will be based on the price of metal the last time they purchased casting shot - unless today''s price is higher (see #1). Attempting to negotiate the price of metal is often met with the response "that is the price because I say it''s the price, if you don''t like the price you can go buy your own casting shot and make it yourself" and I know this because I''ve heard it more than a few times...

5. The current price of spot gold or platinum does not have a direct relationship to the selling price of karat jewelry, unless the price of spot gold or platinum has increased, in which case see #1.

6. When in doubt, see #1.