Today`s Economy Affecting Gold Prices

Many of you jewelry makers may be concerned about the price of gold, especially in the current economy, because it directly has an effect on your business or favorite hobby. The purpose of this article is to review the basics of fluctuating gold prices so that you can be prepared for an unforeseen soar or plunge.

Gold and Silver Wire

Before 1900, the U.S. relied on a bimetallic standard. Under this system, a certain amount of gold and a certain amount of silver were equivalent to one dollar. In 1900, the U.S. moved to a gold standard. Under the gold standard, certain amounts gold, and not silver, were equal to the dollar. This monetary system caused the price of gold to remain relatively stable, although problems prevailed. In 1975, the U.S. began to float the dollar, adopting the fiat standard, respecting both the value of gold and foreign currency. This standard, which is still in place today, allows for more fluctuation in the price of gold.

Although the price of gold is subject to change, the value remains the same because the price fluctuates mostly due to the condition of the dollar. The price of gold typically reflects the U.S. economy. During inflation or a crisis, gold prices are high; the opposite is true when the economy is thriving. Gold prices also indicate the value of the dollar. On average, whenever the value of the dollar is low, gold prices are high; when the dollar is high, gold prices decrease.

Presently, the United States economy is definitely facing its challenges. And the fluctuation in gold prices has shown just that. In just 18 hours, gold prices went up $75 dollars in March of 2009. Some experts predict that gold prices will reach $1,500 an ounce by the end of 2009, though others beg to differ.

So how does today’s economy affect the jewelry maker? As the economy worsens, and gold prices rise, supply prices are also rising. Gold wire and findings will be more expensive to purchase than in the past. This may result in higher purchasing prices for the designer’s consumers.

On an upbeat note, there are many companies that are offering great bargains for their customers, even in the jewelry-making industry. One such company, wire-sculpture.com, offers a 25% discount after becoming a gold club member. This is a great way to save on gold wire, findings, and chain!

Wire-Sculpture’s Gold Club Program

Another alternative to the high gold prices could be to consider using more sterling silver and copper. This option may keep the tag price down, resulting in happier customers.

Silver Filled Wire	Sterling Silver Wire	Argentium® Silver Wire	Gold Filled Wire	Rose Gold Filled Wire
Copper Wire	Nickel Silver Wire	Red Brass Wire	Yellow Brass Wire	Memory Wire

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