Price of gold is falling! Will price of settings follow?

[Blue-Seeker]

Gold has fallen from @ $1900 in August to @ $1550 this week. How much further does it have to fall before we see the decrease reflected in the price of settings? And not only the price of new settings but also the price of antique settings. Some of the ebay sellers are charging top dollar for settings that need lots of work. Thoughts?

 

[StevL]

The gold price falling will affect all the non branded bridal lines *some*, but the big names will hold their price for some time. The truth is a 2 dwt. 14k ring the gold cost is about $58. at $1,000. gold, the same ring at $1,900. gold the gold cost is about $110.

So now where is the hundreds of dollars increase *becuse of gold*?

Now when you start talking a bracelet or necklace that weighs 20 dwt. you have an argument.


Cheers,
Steve

 

[Blue-Seeker]

The gold price falling will affect all the non branded bridal lines *some*, but the big names will hold their price for some time. The truth is a 2 dwt. 14k ring the gold cost is about $58. at $1,000. gold, the same ring at $1,900. gold the gold cost is about $110.

So now where is the hundreds of dollars increase *becuse of gold*?

Now when you start talking a bracelet or necklace that weighs 20 dwt. you have an argument.


Cheers,
Steve

Thanks for your input, Steve. I agree that the huge price increases in settings didn't seem to have any relation to the actual amount of gold used to make the setting. That's why I'm hoping to see some rather large price reductions, at least in settings that don't contain any diamonds. But I'm not holding my breath.

 

[karpouzi]

I think the fact that setting prices increased far more than the actual cost of the gold gives us the answer. Jewelers were all too happy to raise prices through the roof using the gold price as a convenient (but disingenuous) excuse. I doubt they will drop the price as readily.

 

[Imdanny]

No add me to the list as one who believes the prices won't drop in accordance even as jewelers would have and have no problem blaming same for rising prices. Sigh.

However I am hopeful (I'm looking at you Cartier! I know- like you care ) jewelers will at least halt their prices increases for gold jewelry. I was very afraid prices of gold jewelry would just go through the roof like happened with diamonds. I've followed the prices of certain Tiffany and Cartier platinum and gold rings for a long time so I have a mental picture of the price increases, when they happened, and how much as a percentage over the base point of when I started following it they've risen as well as the percentages they've risen with each price increase. Interestingly enough, Tiffany introduced a hybrid platinum gold ring as a new product at the $500 price point and raised the price 50% within a year. Sometimes there's no rhyme or reason to it.

It is good news that gold prices are falling. I didn't know that. Thank you for letting us know.

 

[Laila619]

I think the fact that setting prices increased far more than the actual cost of the gold gives us the answer. Jewelers were all too happy to raise prices through the roof using the gold price as a convenient (but disingenuous) excuse. I doubt they will drop the price as readily.

Unfortunately, I agree.

 

[Blue-Seeker]

Thanks for the replies, everyone. I agree. I don't think prices of settings will fall, at least right away, especially the prices of pre-made or stock settings. Perhaps quotes for custom pieces will be a bit lower. My guess, though, is that now that consumers have adjusted to the sticker shock of higher prices, there's no incentive for vendors to lower those prices. Bah.

 

[StevL]

Don't blame the jeweler!

Us jewelers are just passing the additional cost to the end user. The big brand names have made some pretty big increases to our cost over the past couple years. I know it's crazy......


Cheers,
Steve

 

[Blue-Seeker]

Don't blame the jeweler!

Us jewelers are just passing the additional cost to the end user. The big brand names have made some pretty big increases to our cost over the past couple years. I know it's crazy......


Cheers,
Steve

Good point, Steve. Yes, in the case of stock settings, it's my understanding that the manufacturers substantially raised their prices in the past few years, leaving the retail jewelers with no choice but to raise their prices, too. That's why I'm wondering if we'll see lower prices for in-house custom work before we see lower prices for stock settings and branded settings. For plain settings, that is, not pave or settings with melee-size diamonds. I've put a couple custom projects on the back burner because the quotes I got were outrageous -- and I already own the stones! For another project, I'm using sterling silver.