Posts Tagged ‘Gold’
Why Silver Jewelry is Fast Becoming a Better Investment Than Gold Jewelry
The historic price ratio of silver to gold shows that about 10 ounces of silver would buy one ounce of gold, a 10:1 ratio. Recently, the ratio is about a 50:1 ratio (with silver at $20/oz., and gold at $1000/oz.) As the silver to gold ratio returns to historic values, from 50:1 to 10:1, you may make over 5 times more money investing in silver, than gold!
More than all of the silver produced by the mines each year is consumed by industry, which leaves little to no room for substantial investment demand. A marginal increase in investment demand will drive prices sky high.
Most silver is produced as a by-product of mining gold, copper, zinc, or lead. Higher silver prices might not substantially increase the amount of silver mined each year. Consider, in 1980, when silver prices went up to $50/oz., less silver was mined than in 1979.
So watts this mean to the jewelry sector ?.Simple a huge increase in the cost of silver jewelry and with that will come a bigger demand by the general public.
Now this is were it gets tricky ,if you are a jewelry retail shop or a customer you have to be sure that the silver your selling or the silver jewelry item your buying is of the highest standard,98%fine silver is the best.It is quickly becoming the new fashion standard.
At present 90% of all silver is made to a standard 925%Sterling silver,which means it has a small amount of impurities added ,However for an investment this just isn’t good enough .and it gets worse ,if you do buying trips for silver from lets say to Asian countries,the majority of silver in street stalls would not pass the assay test 925 that’s because the manufacturer has added large amounts of copper or bronze with the silver in order to be able to sell it cheap.
There are no tricks to buying silver ,firstly you must establish a good customer relationship with a reputable manufacture or wholesaler.
Secondly he should be happy to provide documentation of were the raw silver comes from with a assay test certificate.
Thirdly try and buy silver that’s Monogrammed,Customers love having designer name brands such as KDL,and you will find that if a manufacturer is name stamping his silver jewelry he has a reputation to protect.
So to sum things up ,Yes invest in silver jewelry ,but only in 98%pure silver ,wear it ,use it and wait for the price increase then you truly have a valuable asset ,you can even have it melted down and re sell the silver .Its a win win over gold .Even if gold increases in price it will not match the percentage profit that silver is now starting to return.
Why Did People Actually Start to Treasure Gold Necklaces in the First Place?
Gold and silver are the two metals with the highest and probably the oldest symbolic and historic charge of all. Used ever since the dawn of many cultures for the manufacturing of jewelry and religious icons, they both had an important part in the sacred and profane backgrounds as well. Gold necklaces have always been worn with pride and distinction as epitomes of richness, power and nobility. The larger the gold necklaces, the more important the function of the wearer: this was actually the way to show the social status. Things have changed a lot in time, and nowadays, gold necklaces are a common thing.
Presently, some of the most exquisite jewelry is created of what looks like fine golden thread; thinness of the gold necklaces is thus one of the main specificities of elegance and refinement. If we take for instance the case of diamond necklaces, the stones are usually embedded in white or yellow gold in general. This metal is considered among the most suitable to be combined with such exquisite and valuable stones, but it definitely shares this favorite place with platinum, an equally valuable metal.
The explanation of the phenomenon lies in the historic discovery of the properties of this noble metal: gold has little if any chemical reaction with external agents, it is not affected by moisture or heat, not to mention the electrical conductivity properties that it shares. However, the only problem our forefathers may have had when trying to make gold necklaces, was that of metal purity. In its purest form, metal is not hard, but malleable, therefore, the creation of an alloy to give it resistance was absolutely necessary. Thus, the gold necklaces we wear are actually made of gold and another metal: silver, nickel or titanium.
The prices of gold necklaces on the world market vary according to the metal purity: the 24 karat gold is definitely the most expensive, and the prices drop if we take the scale backwards. 14 karat gold necklaces will definitely be cheaper; then, white gold is often more expensive than yellow gold, not to mention that the association of a semiprecious or precious stones in the design has a decisive word to tell for the overall value of the jewel. A recent market tendency has been that of labeling the gold necklaces according to the metal origin: where it was actually imported from. Despite all these considerations there is one thing that remains clear here: personal taste and craftsmanship clearly influence the jewel choice too.