AHHH 2009 Gold prices are killing me.....

[haagen_dazs]

When the gold price goes up, is it immediately reflected in the cost of settings made with yellow or white gold?

I am curious
Roughly speaking, what is the weight of gold that goes into a 18K white gold or a 14K white gold setting?
rough average in oz or grams....

 

[stone-cold11]

Maybe, but it is still much cheaper than Pt.

Pure gold is 24K. So 18K is 75% gold by weight. Depending on the exact alloying mixture, as the alloying metals are usually much less dense, by volume a 14K WG can be less than 50% by volume of the piece.

 

[Todd Gray]

Gold is not that much cheaper than platinum right now, platinum is currently at about 1340 and gold is trailing at 1050. When prices are on the rise, most manufacturers and vendors will increase their prices according to spot... Interestingly enough, when prices are dropping, most manufacturers don''t pay such close attention and a lot of vendors are "huh, say what?"

 

[stone-cold11]

Sometimes I really wonder about how they balance their balance sheet.

 

[chrono]

With the price of gold so close to platinum at the moment, I’d rather pick a platinum setting. Just as with prices at the gas pump, when crude rises, the $/gallon goes up the next day but when it drops, you don’t see it take effect for a week.

 

[Todd Gray]

Date: 10/13/2009 12:22:34 PM
Author: Chrono
Just as with prices at the gas pump, when crude rises, the $/gallon goes up the next day but when it drops, you don’t see it take effect for a week.

"There''s an App for that!"

 

[Rockdiamond]

Date: 10/13/2009 12:17:42 PM
Author: Stone-cold11
Sometimes I really wonder about how they balance their balance sheet.

Considering all the casting houses that have failed over the past 12 months, some of them have not been able to survive this.


It''s also important to remember that labor plays a major role in the price of many rings- especially higher quality ones.

haagen dazs- I''d say a platinum solitaire will weigh between3-6 grams depending on the thickness of the shank, and size of center stone.
18kt gold probably about a third less.

I have a fairly thick platinum 3 stone on my desk that weighs 10.7 grams.

 

[haagen_dazs]

Date: 10/13/2009 12:15:50 PM
Author: Todd Gray
Gold is not that much cheaper than platinum right now, platinum is currently at about 1340 and gold is trailing at 1050. When prices are on the rise, most manufacturers and vendors will increase their prices according to spot... Interestingly enough, when prices are dropping, most manufacturers don''t pay such close attention and a lot of vendors are ''huh, say what?''

Hi Todd.
Nice graph

How much gold gold do manufacturers hold in active stock?

How fast do they react to the active gold price trend?

I would think that manufacturers will buy some bulk gold quantity ahead of time. There would be some lag time before manufacturers jack up prices of gold settings due to increase in prices.

Maybe setting manufacturers are hedging gold prices too haha =p

 

[haagen_dazs]

Date: 10/13/2009 12:22:34 PM
Author: Chrono
With the price of gold so close to platinum at the moment, I’d rather pick a platinum setting. .

we shouldn''t let prices affect what we really desire in life.
personally i will not buy plat just because gold price = plat price

eg i won''t buy apples even if the price of bananas = apples since i want to eat a banana and don''t care for apples
ha

going off tangent
there is this book called "predictably irrational" where it describes how people perspective in this world is very often swayed by relativism (among other things).
we should occasionally sit down and reflect about whats important rather just get pushed and swayed by all the craziness in this world
haha
ok my 2 cents

 

[Rockdiamond]

Date: 10/13/2009 3:07:37 PM
Author: haagen_dazs

Date: 10/13/2009 12:15:50 PM
Author: Todd Gray
Gold is not that much cheaper than platinum right now, platinum is currently at about 1340 and gold is trailing at 1050. When prices are on the rise, most manufacturers and vendors will increase their prices according to spot... Interestingly enough, when prices are dropping, most manufacturers don''t pay such close attention and a lot of vendors are ''huh, say what?''

Hi Todd.
Nice graph

How much gold gold do manufacturers hold in active stock?
As little as possible generally. It''s too much of a drain on cash flow to own the gold. Some of the major casting houses "lease" the gold they have on hand

How fast do they react to the active gold price trend?
The major casting houses price the pieces daily based on current market for gold

I would think that manufacturers will buy some bulk gold quantity ahead of time. There would be some lag time before manufacturers jack up prices of gold settings due to increase in prices. See answers above- that''s not a common practice

Maybe setting manufacturers are hedging gold prices too haha =p

 

[haagen_dazs]

Date: 10/13/2009 12:15:50 PM
Author: Todd Gray
Gold is not that much cheaper than platinum right now, platinum is currently at about 1340 and gold is trailing at 1050. When prices are on the rise, most manufacturers and vendors will increase their prices according to spot... Interestingly enough, when prices are dropping, most manufacturers don''t pay such close attention and a lot of vendors are ''huh, say what?''

hmmm

What caused the gold to spike in 1979 so rapidly? followed by a fast crash out in 80-81 ???