Gold; The New Currency!

I’m sure like us you haven’t been able to miss the huge rise in gold prices.  Many consumers are routing through their air looms and selling their gold whilst designers are having to think up new ways of creating pieces that are affordable for their clients.

We experienced a period of substantial growth in August and September last  year, with gold prices peaking at $1,895/oz however this was followed by a sharp price decline which left it at $1,532/oz at the end of the year.  In the World Gold Council’s Gold Demand Trends report for 2011 it noted that the average gold price for the year was $1,571.52/oz, which was about 28% higher than the 2010 equivalent.  Although we are yet to see if Gold prices will continue to rise at this rate, Thomson Reuter GFMS has forecast that the average price of gold in the first half of 2012 will be $1,640, rising to $1,840 in the second half.

One of the reasons we have seen such an increase in the price of gold is firstly due to investors seeing it as a safe haven in times of economic concern. They are migrating to gold as it’s seen as a store of value.

Secondly, due to central banks such as The Bank of England printing additional money to combat the global economic slump investors are wary of the risk of increasing inflation. Therefor they are avoiding interest-baring assets such as saving accounts and bonds and moving their investments into assets that are seen as inflation linked such as Gold.  Gold has become a currency in it’s own right.

You will find that a lot of people in the trade might highlight that the price of Gold has risen due to increased demand from developing countries such as China and India. However, this can only account for a small proportion for the rise as their populations and incomes have not risen by anywhere near as much as the price of Gold.

Investment is likely to continue to boost the Gold market this year. This is particularly highlighted in Europe with the ongoing economic uncertainty in countries such as Greece and Italy encouraging investment demand.

This is not necessarily bad for the jewellery industry it just means we have to be aware of the change that is occurring and adapt this to our clients needs. We have a lot of experience in buying and selling gold for our clients.  Something that we have being doing a lot more of recently due to the noticeable rise in price.

If you would like a consultation please contact: Louisa@silksoflondon.com

April birthstone - Diamond!!

April birthstone - Diamond!!

Giving a piece of jewelry containing a birthstone gem is said to bring the wearer good luck and protection.  So for all those men out there who are short for ideas, you cannot go wrong with finding out your ladies birthstone. Not only is it thoughtful but they will LOVE a piece of jewellery. What women doesn’t!? Monthly birthstones symbolize the month of birth according to the Gregorian Calendar.  So if you are April count yourself lucky to be the month of the Diamond. Now let’s remember that this can also include coloured diamonds. {Take a look at SoL’s blog on coloured diamonds for some more info on these}

For those who were born in the month of April the Diamond is the traditional birthstone – said to enhance relationships and increasing inner strength. The Traditional Metaphysical Properties for the April Birthstone Diamond are balance, clarity and abundance. The healing properties of the April birthstone are reputed to be effective for health problems as the Diamond is also used to draw out toxins and therefore was used as a remedy for poison.

Where are the Diamonds found?  Diamonds are thought to have been first recognized and mined in India.  Roughly 49% of diamonds originate from Central and Southern Africa, although significant sources of the mineral have been discovered in Canada, India, Russia, Brazil, and Australia.

Definition of Diamond, the April birth stone: The word Diamond is derived from the Greek word "adamas" which means "hardest metal" which reflect the property of the stone. The diamond is a precious stone or gem excelling in brilliancy and remarkable for its extreme hardness. This gem is a member of the Diamond (Carbon) family. It is the hardest substance known. The diamond as found in nature is known as a rough diamond and from here is cut into forms with many reflecting facets, by which its brilliancy is increased. The crystal structure of the Diamond, the April birthstone, is Isometric.

Various characteristics of diamonds are graded and categorized by the diamond industry. Learning about diamonds is first learning about the "four Cs" of diamonds, which are considered the most important grades and categories:

•   Cut

•   Clarity

•   Color

•   Carat weight

And then there's the "Fifth C":

Certificates.

Keep an eye out for our next blog, which will guide you through all these important grades you should be aware of before you purchase a diamond!