| Nothing more personal than our response to color. | | | | increase the actual original cost to allow for their |
| Color is the new Language of passion, and nothing | | | | overhead, costs, and for their profits. |
| captures it better than distinctively styled jewelry. | | | | The same consideration hold true for jewelry with |
| Leave her speechless with our brilliant colorless | | | | gems. Jewelry with gems may even be a worse |
| and fancy colored diamond or bold brilliant | | | | investment than plain gold jewelry. The price of |
| gemstone jewelry styles. | | | | gems has risen drastically, as have the prices of |
| When you buy even the finest jewelry, you are | | | | furs and cars, and just about everything else in |
| buying a manufactured item, no matter how | | | | recent years as well as the precious metals, but |
| handcrafted it is. The reasons begin with the | | | | the value of gems is quirky, often depending on |
| metal, because precious metal used in jewelry is | | | | fashion and demand, among other factors. |
| never pure. | | | | Diamonds are one example. Prices of diamonds |
| Gold, platinum, and silver are all alloyed for various | | | | have risen, although the prices have escalated |
| reasons. The greater the amount of the alloy, the | | | | drastically only for certain diamonds. One reason |
| less value the precious metal. For example, the | | | | for the rise in general is demand. The United |
| price gold on the commodities market and the | | | | States alone accounts for more than 50% of the |
| world gold market is based on 24 Karat or 0.9999 | | | | world diamond jewelry market. Thanks to |
| Gold. Thus, the value of gold in jewelry is worth | | | | aggressive advertising campaign, that percentage |
| only as much as the percentage of gold used. 22 | | | | has held true, regardless of how the market in |
| Karat gold will have more gold than 18 Karat gold, | | | | other parts of world has increased. Thus, the |
| and 18 Karat gold will have more gold than 14 | | | | price increases along with the number of people |
| Karat gold, but none has the amount of gold as | | | | vying to buy diamonds, as soon as the market |
| pure 24 Karat gold. The same considerations hold | | | | does not meet the demand. |
| true for silver and platinum. | | | | Another reason is that the market is controlled by |
| The first reason why jewelry is not an | | | | DeBeers, through its subsidiaries, DeBeers control |
| investment, therefore, is that you are buying | | | | sales of 85% of all diamonds from all over Africa, |
| karat gold, not "pure gold," and gold is valuable | | | | Russia, and elsewhere. Monopolistic as it is |
| simply because it is gold. Since the world market | | | | argument offered by DeBeers that keep even |
| is based on "pure" gold, the gold in jewelry has | | | | Russia in line is that diamonds are a luxury item, |
| less value, depending on the karatage. That value | | | | with an intrinsic value unmatched in any other |
| will increase, or decrease, with the price of gold, | | | | such item, but the value can be maintained only |
| but will never equal the price of pure gold. | | | | by strict control. The strategy has worked |
| The manufactured metal is further manufactured | | | | successfully for every one in the diamond market |
| in jewelry in design and workmanship, both of | | | | except consumers. |
| which add to the cost of the gold. If you buy a | | | | Jewelry with colored stones is not as tightly |
| fine jewelry, regardless of whether you buy it | | | | controlled internationally as the diamond supply. |
| from the person who made it or from a store | | | | Buying jewelry, the first rule is to buy jewelry, |
| (including online store) you are paying for design, | | | | with or without gems, because it appeals to you |
| workmanship, and exclusivity, all of which add to | | | | emotionally and you like and can afford it. Do not |
| the price of the gold and may cost more than | | | | buy jewelry purely for the purpose of an |
| the gold. If you buy mass-manufactured jewelry, | | | | investment. If the past inflation is any indication, |
| the cost of design and workmanship is spread out | | | | you would have to keep the jewelry at least 6 - |
| among all the pieces of jewelry of that design. | | | | 10 years just to break even on the purchase |
| You are also paying for increases in cost along | | | | price, not allowing for any profit. You may have |
| the sales chain until the jewelry reaches you. The | | | | to take a big loss if you need to sell in a hurry. |
| manufacturer, the wholesaler, and the jeweler all | | | | |