A few days ago I heard that the Federal Reserve planned to lower the interest rate even more and it was no surprise to me when gold closed at 1318.00 today.
There are many factors affecting the skyrocketing price of gold. It is often an indicator or mounting military tensions as well as indicator of the global economic instability as all currencies, not just the dollar, are loosing their value against the precious metal.
But at this moment it is a matter of instability as well as demand. The demand steming from the fact that it is the wedding season in India where brides are traditionally lavished in gold. Considering that India is one of the fastest growing economies it is no surprise that gold consumption in that country has reached new levels.
Consumption of gold has also increased in China where a growing middle class is consuming just about everything that can be purchased as well as gold.
Keep an eye on “Strategic Metals”-Platinum, Paladium, Copper etc and you will see a sharp rise in their prices as well.
As the value of the dollar continues to slide the price of all these metals will continue to rise. It is perhaps a good time for this government to strengthen the value of the dollar by embracing “Protectionist Policies” (raising tariffs on imported goods) and find a way to bring back the American Production Factories that were closed nationally and opened on foreign soil by the evolving “Multi-National” companies.
Category: Jewelry
Despite the “Great Recession”
Jewelry is still the most appreciated commermorate gift presented during proposals, anniversaries, birthdays and recognition of achievement events.
But If there is an item that has been greatly affected by these recessive times it has been the price of gold, the raw material we jewelers use to make all our products and with it’s sky-rocketed price so has the cost of jewelry. Even the simplest of jewelry items have truly become a “Luxury Items”.
Today there are may so called “Luxury Retailers” whose products are nothing more than the sum of applied marketing schemes of some so called “Luxury Conglomerate” who has purchased an established brand. Many consumers are demanding more than a homogenized presentation of an item and aligning themselves with brands that truly have identified with them during these hard times.
Without a doubt this has been a time that has re-defined our core values including what we call “Luxury Items’. I hope that with my own marketing phrase for the 2010 Holiday Season… “Louis Alexander, We’re with You from Start to Achievement”, You, the consumer will find that my small company has a subtance that very few big brand conglomerates can ever match.
Coming in October:
I am happy to announce that I will be acquiring the Acme Pen line.
Acme Pens are considered the “Swatch” of the pen business. A relative young and successful company Acme Pens offer a variety of pens designed by contemporary living artists and are a great gift for anyone at anytime. I will be preparing an detailed write up withing the next month.
Louis Alexander Jewelers 