Shopping for gold jewelry this year.

I was talking to some jewelers yesterday and they all seem concerned about the holiday shopping season. They face a double-problem this year. While all retailers face a sluggish economy, the jewelers almost face higher costs primarily from gold prices soaring. While gold prices retreated in the past few weeks, the gold jewelry you are seeing in stores now may have been priced when gold was at a record high price two months ago. And while diamond prices have dropped in recent years because of the recession, diamond sales are sluggish because of the economy.

This may mean that margins on jewelry might be thinner this year than in the past. Jewelers might be willing to wheel and deal a bit more this year.

And you are likely to see more semi-precious stones, and gold plated and gold-filled jewelry this year in department stores. Silver will be more fashionable because silver is only a fraction of the price of gold.

But I have to think back to around 1980-81 when gold prices surged. The surge in gold prices actually led to more gold jewelry sales. Gold became a status symbol, and a fashion statement. Men and women wore gold chains and men wore gold ID bracelets. Could history repeat itself after the recent run-up in gold?

But the difference between 1981 and today is that we had big inflation in 1981 and today's big problem is recession and unemployment.

If you don't want to exhaust your self by going to any places just for buying gold and silver why don't you try to use the power of buy gold and silver online. That is from my own opinion.

Hi Morriz and thanks for posting. You linked to a company that has a website that is under construction: www.sierranevadasilver.com Is this a new company or has it been around?

One of the important things for buying gold and silver online is to know the reliability and reputation of the company you are sending your money to, and what quality or "brand" of gold or silver they are selling. Many companies deal with either government issued coins or rounds (American Eagle or Canadian Maple Leaf for example) or they deal in established private brands that have a long history. Unknown private brands may be difficult to sell in the open market later, or might carry a lower resale price if the buyers do not recognize the brand.

It is important to shop around for price and service but often price differences are very small and this is because the markups on gold and silver should also be small. A red flag should go up if someone is trying to sell gold or silver at a price that seems too good to be true.

When in doubt consumers should place small orders with companies they do not know very well. Also beware of companies that do not ship immediately. There is no reason for any company to hold on to your money for any period of time before they ship your gold or silver.

omg !!!gold rates are too much higer,i think only rich people can afford gold in these days