While Apples of Gold maintains its commitment to ethical and fair pricing of all its fine jewelry, you may notice that the prices on some of your favorite ‘wish list’ items have increased to reflect the worldwide increase in the price and value of gold. Initially, this may seem like bad news. Who likes to see prices go up? But the positive news is that gold continues to hold value and worth in the global market. The wise investment you make today remains a wise investment tomorrow, and for years to come. When it comes to gold, the money you spend is always money well spent. Gold is not only beautiful to the wearer, it is a valuable commodity on the world market. If there was ever a time to own gold, the time is now.

Our Wreath Wedding Band in 14K Yellow Gold, shown here, is gold at it’s finest. This band measures 6.5mm wide, is crafted of solid 14k gold, and features the distinctive engraved leaf pattern around the entire band. Polished to high shine, this is a ring you’ll be delighted to wear for years to come. With each year of your marriage, it will not only hold its beauty, but its value as well.

To browse more gold wedding bands from Apples of Gold, click HERE.

Why is this going on now?  Because some of the world’s currencies are slipping.  The euro, for instance, fell to its lowest point against the U.S. dollar this week.  Greece’s economy is teetering on chaos, with the government’s debt surpassing its ability to pay it off.  The World Bank and the International Monetary Fund are stepping in with a loan package for the Mediterranean nation that will help the country return from the crisis, but the damage is done.  Greece will be borrowing money for many years to come at a much higher rate than previously paid.

When people get nervous about the economy, the state of the world markets and their own financial security, they turn to gold.  The price goes up as demand rises and supply tightens.  That’s nothing new.  But how much higher will this go?   There’s some good and bad news on that.

Bad news for those of you who are interested in selling and good news for those of you who are considering a Mother’s Day gift, an engagement and wedding set or just a personal reward for having survived the worst recession since the Great Depression of the 1920′s.   Gold probably will not go much higher at this time.

The reason for that is because the U.S. economy is recovering and in spite of everything that we learned during this recent economic downshift, we remain the world’s biggest consumers.  We buy all kinds of gadgets and electronics.  We like new cars.  Our houses are large.  Our lives are large.  And although slowly shrinking, our debt is generally large, too.  

So why the expected flatline?   The eye is on the United States Federal Reserve Bank.   As the economic recovery gets underway in the U.S., the Fed is expected to increase interest rates, which had been at all-time lows.  When the Fed raises the rates, the dollar will likely see a boost and if gold follows history, when the dollar strengthens, the price of gold usually will fall.   

Good news for the economy.  Good news for gold retailers.  Good news for gold buyers.   We hope you’re ready to “feel the love” for gold once again.

The economic news is mixed, it would seem.  We are officially in recovery here in the United States, but our concerns continue as we try to sort out what the word recovery will really mean for us.   The economy still seems far from what most of us have seen during our lifetimes and even further still from stable. 

 Oil prices are slipping this week, with the price of crude slipping to under $80 a barrel (considered outrageous a few years back, I know!) on worries about the world economy and whether it will recover.  The price of oil slipped and investors fled that worrisome risky business to… the dollar.  (Apparently, it’s regaining its lovely green color these days.)

The price of gas also is a key factor in several leading reports that suggest that food prices will be very high for the foreseeable future.   A harsh winter, high costs of seed and chemicals to grow the fruits and vegetables (or sadly, even higher costs of organic produce) and the cost of shipping will all factor in to concerns about this part of life.

Unemployment seems to be beginning the turn-around, but it’s turning around at painfully slow speeds.  It now appears to be improving, but it is still at near record highs.  It’s a tough time to be unemployed and record numbers are feeling this pinch.

As all of these factors combine, there is the growing concern among Americans that maybe the glory ride is over.  An increasing number of experts are predicting that perhaps China is about to emerge as the leading global financial power.  I have wondered that myself, and asked a friend visiting from the UK that very question recently. 

She looked at me with a bit of annoyance.  She said that most people from around the world think Americans have nothing to complain about, because as bad as we might think things are, they are so much worse “at home in the UK.”  She told me that while we are hearing the faint flickerings of recovery, they are still in free-fall on the other side of the pond.

Certainly this seems true in Greece, where the country is dealing with massive debt and shortfall, and trying to hold its creditors at bay.  It’s also true in Iceland, where the nation’s largest bank failed and then voters were asked by referendum whether they would pay to cover its losses to investors in Europe.  (Not surprisingly, the answer was an overwhelming, 97% “no.”)

But the price of gold, where is it in all this?   It is hovering just above $1100.  It’s been steady for the last month but increased a whopping $660 in the last five years.   That’s more than half of its value in that time period. 

Whether it will see increases and further gains depends on a great number of factors, most of which are unforeseeable.  But if we know anything from the past, it’s that gold will hold its value through market ups and downs.  And it’s something tangible: a hedge against the worries of inflation and time.

It closed the week at $1092.60 per ounce, which is quite a fall from the ballpark-benchmark of $1200 we saw only a few months ago.   But if you are watching the markets and pondering the financial dealings, it would seem that there’s still room to grow.   The United States has pulled out of the recession technically, but unemployment is still at 20+year highs and most people have a general state of mind about the economy that can only be described as grim. 

The price of gold, as we all know, is tied greatly to the success of the world’s financial markets.  For decades, it has been tied to the stability of the American dollar.  The dollar hasn’t been steady for some time now because of the debt loads taken on by American households and the financial institutions that carry them.  That debt, in turn, was purchased heavily by foreign banks, many based in China and elsewhere around Asia.

What?  The debts of American consumers now are held by the Chinese?  Yes, the economies in both burgeoning China and explosively successful India are recovering nicely.  They are enjoying a boom.  And they hold the notes on U.S. banks debt. 

So there’s one source of the confusion on gold prices.   Since confidence in the U.S. dollar hasn’t quite returned, the price of gold should still be steady and high.  In real dollars, adjusted for inflation over the course of the past 30 years, gold is still relatively cheap.  But if the world economy is slowly turning, warming its heart to the bloom of the Chinese and Indian economies, the price of gold may be confusing to watch for some time to come until we all find our footing in what may be a somewhat changing world order.

We’ve all read the reports and seen the heart-rending pictures out of Haiti.  The world’s poorest nation has been hit by a 7.0 magnitude earthquake, killing what the Red Cross believes will be between 45,000 and 55,000 people, injuring tens of thousands more and leaving hundreds of thousands without shelter or food.  It’s a grim situation and we all want to do whatever we can to help that painful situation.  (If you can, take a moment and donate $10 to the Red Cross by texting “Haiti” to 90999.) 

In addition to that new crisis, our global financial worries continue.  The hopeful start to the new decade is still being marred by worries, such as the employment numbers released on Thursday, which showed new unemployment numbers taking an unexpected jump.    This was actually quite puzzling to economists, and we have to hope it is, indeed, a blip.

Also down: retails sales.   They weren’t as strong as hoped or expected in November and December.  Experts say it means our recovery is still very tentative.

In spite of these sorry reports, the price of gold continues to slip downward, too.  The price today is trending around $1132, down almost $10 on the day.  That’s actually a hopeful sign.  The reason is because, as we’ve discussed many times, gold is a market hedge in many investors’ minds.  They use it as a place to hide money when the dollar lurches or the economy rocks.

So if the price of gold is slipping, that means demand is down and could be seen as an indicator that investors aren’t quite as bearish as one might think.  They believe that the economy is coming back, however slowly.  They aren’t putting their money into gold, but out there, buying, selling and trading happily in the belief that the recession is over and better days ahead.

I am going to choose to hope with them.  For myself, my investments and my world.  And for Haiti.  I hope you can see your way to do the same.

Americans have a lot to think about financially.  Our economy drives much of the rest of the world.  Our approach to consuming goods and services is what has provided jobs, homes and education in much of the world.  And yet our spending (and debt) habits are a sizable portion of what landed us this past year in the greatest financial crisis since the Great Depression.  Our economy tanked.

To recover, we are told we will have to spend.  But to prevent the same spiraling problem in a downward spin, we have to work our way out of debt and begin to save.  How is it possible to do both?   Like most people, I’ve been pondering this a lot for the past year.

For myself, I’ve come up with one singular answer: Gold.

The price has slowly backed away from the $1200 mark we saw in the last couple of months.  Perhaps investors are feeling more confident in the American dollar and stashing less of it away in gold.  But what it truly means is that it is now a better buy than it was only weeks ago.  It’s a buying opportunity.  Whether the current price ($1093.60 on Tuesday) is your price point, is up to you.  But it is significantly down from where it was and from where it is predicted to go.

So let’s think about this.  How can you spend money but at the same time save for the future?  If you invest in gold, you have something that will hold its value.   The intrinsic value of the metal is always there and available.

You can buy someone a gift of fine gold jewelry that remains with them always and may even be handed down to someone else with a sense of increased value.  Or you can buy them a gift of investment gold.   Either one will hold its value, although admittedly, the investment gold will be an easier mark to retrieve the value should it be necessary or desirable.

If we all save our money, our “stimulus” efforts will fall far short.  If we spend our money, our future slides out our back pocket and into the street.   If we spend our money and get value for our investment portfolio, whether we’re talking about actual investments or investments in those we love, then we may have the best of all possibilities.

And isn’t that our best resolve for 2010?

But what about the price of gold?  It topped $1200 a week ago, but since then, the price has dropped again.  It is now hovering at midway between $1200 and $1100, with the trend being downward.   What does this mean?  Has the world economy started to ease and confidence returned to the dollar?  Have we turned the corner?

We are seeing a few more confident signs.  There are signs that consumer confidence is returning and that perhaps “Black Friday,” which has always seen American retailers through, got a decent turn-out this year.   That’s sounding better and better, isn’t it?

But even more important than sales are jobs.  The latest U.S. Labor Department statistics showed that the freefall in the job market has perhaps slackened; that the bloodletting is slowing and weekly job losses (which had been at 700,000 earlier this year) are slowing, too.  Americans aren’t back at work yet, but they aren’t losing jobs in such great numbers anymore.

And President Barack Obama has announced that he will hold a job summit this week, inviting industry leaders as well as lawmakers to gather to the White House for discussions about how to get Americans employed again.

All of these things inspire confidence in the economy, in the dollar and in the future.  All of which means, the price of gold may sink back to former levels.  I would be surprised if that happens just yet.  But ’tis possible.  And of course, “tis the Season of Hope.”

Me?  I’m hoping for something like THIS!

Happy Shopping!

Friday, November 27 is the day traditionally known to American retailers as “Black Friday;” the day that the shoppers put stores and businesses into the black for the year with heavy holiday shopping.  Following that, of course, is “Cyber Monday”, the most-shopped-day internet retailers may see all year. If there is a “bull market” on gold, this is the time to buy.  But much depends on what happens in other stores and businesses the day after Thanksgiving. What will be the mood this year?

Consumers are concerned, that is certain.  The “recovery” that we’ve all hoped for is slow in coming; the jobs have not returned with the gross domestic product being up and the mood is somewhat dismal.    Some experts believe that Americans have finally learnd their lesson and are busily trying to pay off debts, save money and lead less expensive lives.   But I would submit a few small exceptions that may make recovery still probable.

American consumers are still struggling under their individual debt loads.  Credit card debt was running an average of $8,000 per household.   For much of the last decade, people took out mortgages they couldn’t afford.   Savings accounts were a seemingly antiquated concept.

Now, however, this year draws to a close with people living with more of an eye to expenses, paying down their debts, dining and entertaining at home and trying to live within their means.   We seem to have turned a corner.   And we realize what is needed for recovery.

We are learning to become moderate spenders.  We are going to have to spend a little to assist the American economy to ease into recovery, but we still need to avoid debt.   Thanksgiving this year sees Americans more conscious and grateful for what we have; Christmas, while being a quieter, less expensive affair, will still be as bright with more emphasis on family and being together.

So the dollar continues to lurch higher and we are not out of the woods yet.  It will almost certainly hit the $1200 mark within days.   And very possibly go higher.  We are struggling, but we will survive.   There is another old stereotype that comes into play here.

In the decades past, families that struggled together were stronger and believed “knit together” of stronger stuff.  Those are the stereotypes upon which America was built.  The price of gold to those people was only of concern because they needed a few small tokens of true love and commitment.

Some experts predict gold will hit the $2000 mark.   If it does, we’ll be talking here about what to do, when to buy, and when as well as where to sell, too.   Much will depend on where you, our readers are in your own economic and life experiences.

Meantime, enjoy our coupon 10% off+free shipping “CyberMonday” coupon*, which is good until November 30.   And don’t be at all surprised if the price of gold hasn’t gone up to $1200 per ounce by the time the coupon comes down.

This is of course, due to more softening of the greenback.  President Barack Obama at an Asian economic summit this weekend, trying to persuade leaders there to continue to support their own economic recoveries and expect to focus more in the future on growth through equalizing trade instead of just expecting Americans to continue to drive the global economy thru increasing consumption and debt.

Ok, so that’s all a bit concerning.  But we’re now entering the holiday season.  So let’s talk about what this means for holiday gifting.  The price of gold is up at record levels.  Does that mean that gold is a bad investment?  Absolutely not.  The reason it remains a good investment is that experts say they don’t believe the “ceiling has been reached.”   There is still room for the price to go upward.

In fact, if you adjust the price for inflationary numbers, that price is nowhere near a record, as we’ve discussed in past blogs.  It has a long way to go.

But what if you aren’t feeling confident enough about the economy to purchase a thoughtful gift of gold jewelry this season?  What if you are concerned that perhaps this is not the right moment for you personally to splurge and create an heirloom for your family to pass from generation to generation, that is understandable at this point in time.   It doesn’t mean you can’t give a beautiful piece of artisan jewelry for someone to love and treasure this holiday season.

ApplesofGold.com has added some exceptional silver jewelry designed by Kira Ferrer to its offerings this holiday season and some very intriguing gold and silver jewelry that is also very affordable.   Don’t let economic concerns stop you from showing the special people in your life how you feel about them this holiday season.

And if you are ready to sell gold, don’t forget to check out our section on gold buying. We offer some of the best prices and policies available.

Well, it’s exactly that. I am waiting.   Last week, we compared gold prices now, tottering between $1050 and $1060 per ounce, which sounds good initially, but in compared with the highs of the 1980′s, and adjusting for inflation, we see that actually is a pretty low price. 

Which ought to make one wonder why invest in gold?  Obviously, because the market makes you nervous and, when the dollar falls, gold is generally a safe haven.  But right now, the stock market is teeter-tottering up and down and the price of gold is following along.

Here’s what I mean: in 2009, the Dow Jones Industrial Average is up 14%.  Gold futures, meantime, seen as a safe haven and purchased by economic naysayers, are also up.  They are up 19%.  The reason for this: low interset rates and cheap money from the government stimulus package have poured into the financial markets, stabilizing the economy and cementing stock positions. 

The long-term net effect of creating all that money?  Not good.  Creating new money, together with the Fed’s maintaining near zero interest rates and the huge deficits that the U.S. is building will weaken the dollar, fuel inflation and cause untold economic hardship down the road.  Investors are pushing into gold to hedge against that future, but at the same time, the efforts of the government are stalling the losses that will undoubtedly be felt in the future because of the weakened American dollar.

Some experts are now predicting that $1000 per ounce is the new floor, and that the dollar will hit $1250 per ounce before the end of this year.  If you haven’t noticed, the year has only about two months left in it, and that, dear readers would be a hike indeed.

So no, I’m not ready to sell any of my gold yet.  If I were in “investing mode” personally, I think gold might be a likely candidate.   Buy on!