Wow–Just– Wait, What? Jewelry? The Election?
You are likely wondering what the price of jewelry has to do with the Presidential Election. We had an historic election just happen, and the winner ended up being a surprise to many of us, including Wall Street. The uncertainty of this candidate winning has caused a world-wide reaction that was swift and a little chaotic.
As we watch the stock markets fall around the world this morning, we are already finding that investors will put their money into “safer” areas–and metals are one of those areas. So if you think about it, these metals are the very ones we use in our jewelry. When the market tumbles, investors often purchase gold, silver and platinum, and metal prices shoot up. This DIRECTLY influences the price of Jewelry, and quickly!
A few years back, I remember when silver went up to nearly $50.00 an ounce and gold at $1900 an ounce, and jewelers abandoned these precious metals for cheaper metals such as copper and brass (me included). Jewelry became way more expensive, and people were selling their old gold and silver for cash. Jewelers were feeling the pinch from both sides, purchasing more expensive supplies, and having to try to sell more pricey jewelry during a recession.
While today’s silver price is still fairly low, (approximately $19), it has shot up by 45 cents within the first hour after the stock market opened today, this first day after the election upset. Will this uncertainty carry on for awhile? Will we continue to see these stocks free-fall?
I am hoping this is a short term increase, and that metal prices will remain somewhat stable. As an Art Jeweler, silver directly effects me in the pocket-book with up-front costs, and with having to increase the price to cover these costs, sometimes means fewer pieces get sold.
Let’s try not to buy into the uncertainty and chaos. Let’s all settle down, keep our hearts and minds open, and live life, no matter who you voted for. It’s all we can do for our own economy, and most of all–our own well-being….
Lynne Patnode is a jewelry artist whose mission is to create beautiful jewelry from Nature’s Beauty. To see what is available for sale, please visit her Etsy Shop
Follow Up to This Post about Metal Prices…
It is later in the day, and the Stock Market has already stabilized–so the price of silver and gold is still pretty good—phew! For now, anyway. But I still think the jewelry economics lesson was worthwhile–helps all of understand the volatility of the metals market and it’s direct effect on you.