Jewelries have been made of gold and silver for thousands of years and these are the presious metals most favored by buyers who insist on both beauty and quality. Nowadays, however, gold is becoming less and less popular due to several factors.
First, gold become very expensive nowadays! The rise in the value of gold has been caused by the global recession as investors are looking for safe haven options to place their assest. International gold prices reached historic levels in September 2011 and are on the way to surpass that levels in the third quarter of 2012. Gold jewelry business suffers the consequences. Fewer and fewer people can afford to pay for gold and for gold jewelry respectively.
Gold is currently behaving like a currency and it is very difficult to predict how its commodity character will change in the long term. The problem is that the rising prices of gold are caused by the problems of global economy, and that is why no one can say exactly when and how this tendency will change. As a result, gold buyers try to avoid paying a lot of money for something whose value may drastically change in the near future.
Moreover, gold jewelries often go with diamonds or other precious gemstones whose prices also rose drastically in 2012. The price of diamonds alone has jumped 29% during the year. As a result gold and diamond rings will cost buyers much more than they did a year ago, for example, and this pushes many consumers further away.
People nowadays prefer to buy jewelries made of sterling silver. It has its appeal not only because it is much less expensive, but also because it is beautiful and stylish. Moreover, sterling silver is appropriate for women and menn of all ages and professional occupations. Not to mention the fact that silver jewelries are unpretentious and elegant, and don’t need expensive gemstones to make them “shine”.
The combination of all these factors leads to the decreasing popularity of gold among jewelry buyers. People are less inclined to pay more, especially when they are presented with the stylish alternative – sterling silver.