The rise in gold prices in 2010 has stimulated demand for gold for a variety of uses. This may seem counterintuitive, but everyone loves a winner and people tend to buy something that is rising in value.
This is certainly true of gold and, in the case of the article linked below, it is true of gold jewelry. Rising demand for gold jewelry is nothing new and not particularly surprising, but gold jewelry is not the recommended form of gold investment.
Gold jewelry is beautiful and decorative, but it comes with a huge premium attached, as well as full retail mark-ups that have no place in the investment world. Nevertheless, the fact that many buyers see their jewelry purchases as a form of investment is testament to gold’s status as a store of value…
Strong gold prices have shoppers investing in bling
The run-up in gold prices is driving jewelry prices higher, and it also is driving more people to buy jewelry as an investment, giving jewelry stores a boost after a tough 2009.