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24-karat Gold

In a positive sign for the United States economy, 24-karat gold jewelry is leading a sales increase for the month of December. After a 60% drop between the months of April and September, prices have made a strong return in December. Upscale jewelry designer Theo Fennell has seen sales rise by 39% in December alone, signaling a strong change in consumer confidence heading into the New Year.

Much like gold bullion, 24-karat gold jewelry is an indicator of economic direction. Investments in gold are seen as a luxury item, with purchases made at times when price increases are imminent and consumers feel they have disposable income. Fennell’s sales statements have been especially well-received, with stock prices rising nearly 500% for 2009.

24-karat gold is extremely popular. Gold bullion purchased by investors is 24-karat, as is high-end jewelry. Because of its purity, this gold is more valuable and increases in price faster than the lesser grades. The higher cost of the raw material in turn makes jewelry created from it more expensive. The higher cost is significant when evaluating its impact on the economy because as the financial world becomes unstable, sales of luxury items tend to drop. For this reason, the increase in holiday sales of designer gold products is a good sign that the economy is improving.

While other economic indicators also suggest that the economy is making a gradual recovery, commercial and retail sales of 24-karat gold presents one of the strongest arguments to date. While Christmas tradition dictates that people need to deck the halls with boughs of holly, confident consumers are busy decking the halls with 24-karat gold bullion and jewelry. 

Shannon King

Senior Staff Writer – GoldSilver.org

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