As of the close of the last business day (April 6, 2012), gold closed at $1,634.10 per ounce and platinum closed at $1,602 per ounce. A year ago, the same date, gold closed at $1,461.50 per ounce and platinum closed at $1,808 per ounce. The gap between the metals was narrow enough back then for us to take notice, but gold remained in its placed as 2nd place to platinum (as it has historically, since platinum is rarer than gold). The gap has now closed (as it has a few times in the past), as gold prices have increased beyond what many of us in the jewelry industry are comfortable with.

Does this mean that platinum jewelry will now be cheaper than gold jewelry? Hardly. See: Why is Platinum More Expensive Than Gold Jewelry to find out why platinum persists as the more expensive metal as far as “finished jewelry” is concerned.

How Does This Effect Jewelry Prices?

As a retail jeweler, Apples of Gold, unlike investors and gold-hounds, wants all precious metals prices to come down. Why? Wouldn’t that help our inventory to become more valuable? Hardly, since most online jewelers stock very little to no inventory. As precious metals prices increase, costs also increase from suppliers and manufacturers, and thus the retail price of jewelry also goes up. This has little advantage for online jewelry retailers, like Apples of Gold, since increased prices means a harder sale.

That is why Apples of Gold has remained true to its value-based jewelry pricing methodology. Our intended mission as a jewelry company, has been and and continues to be to offer quality jewelry at affordable prices. We started Apples of Gold with the intention of charging about 40% below standard retail, once we evaluated how much margin we need to make to be profitable as a company, while providing the best possible value to our customers.

Where is gold and platinum prices headed? No one knows (and we hope you don’t believe all those radio & tv ads about how high the price of gold is bound to go!) All we can guesstimate is that as the U.S. and world economy improve, precious commodities such as gold and platinum should decrease in price. Not only are precious metals investments a type of hedge funds to protect an investor’s portfolio from downswings in the stock market, but as the price of gold and other precious metals stop looking as attractive to investors as they do now, gold funds start to become less popular in the minds of not only professional investors and day traders, but also in the minds of the average mom and pop investors, and metals prices start to stabilize and come down again to a more reasonable rate.

With the gap closing between platinum and gold jewelry, Apples of Gold remains steadfast in our stated mission to provide value. We hope you will think so too. Compare us to both offline and online jewelers and you will see that the difference in our jewelry is not the quality, but the price.

Related Post: Understanding the Price of Platinum Jewelry

Related Categories: Platinum Wedding Bands, Design Platinum Wedding Bands, Gold Wedding Bands

There are several factors involved in pricing platinum jewelry vs. gold jewelry, from the obvious to the less obvious.

The Metals Price of Platinum vs. Gold

Platinum, as a precious metal, is normally valued much higher in the precious metals commodity market than gold. Whereas historically gold has been valued at considerably less than platinum, for one of the first times in history, platinum is priced lower than gold on the market. As of the date of this post, gold is priced at $1,634.10 per ounce and platinum is priced at $1,602.00 per ounce. This is not usual for the market. Many years ago, the disparity was much more pronounced. Gold was often in the $1,000 range per ounce and platinum was in the $2,000 range. What we are seeing the market today is out-of-the-ordaniry.

Whit this in mind, you would think that gold and platinum jewelry would cost the same. Try to purchase platinum wedding bands vs. white gold wedding bands at any jeweler–online or offline, and you will quickly find that a Platinum ring still cost 2-3 times more than a gold one.

Why the Price Disparity? 

As mentioned above, traditionally just the raw precious metals would have had a significant difference in price when it comes to purchasing platinum vs. gold–and that would have accounted for a portion of the price difference. In the past, platinum jewelry cost as an average of 4-5 times the price of the same jewelry piece in gold. Today, the cost difference for platinum is down to about 3.5 times the price of gold. An example: This hammered wedding band in 14k white gold ($575 as of the date of this post) compared with the same hammered wedding band in platinum ($1,925). That is just under 3.5x the cost difference.

But the question must be asked: if the price of gold and the price of platinum are about the same, then why is there still such a difference in cost?

There are several reasons: 

1. Platinum is approx. 60% heavier than 14k gold. So the same ring that weighs 10.0 grams in gold weight will weigh approx. 16.0 grams in platinum. Therefore, you are paying more money per weight for the same ring design. Since jewelry (on the wholesale side) is valued based on metal content per item, you are already looking at about a 60% difference in wholesale cost–even when the precious metals prices are equal (which is usually not the case with platinum, except on the day that I chose to write this post!)

2. Whereas platinum jewelry is 95% pure platinum, 14k gold jewelry is 58.3% pure gold. Another way to think of this is to think of it in terms of parts per karats. For example: We know that 24k gold is pure. But in the United States we are mostly purchasing 14k gold, which means that the jewelry you purchase is 14 parts gold and 10 parts other alloys (14/24), making it 14k. Likewise, 18K Gold is 18 parts gold and 6 parts other alloys. Platinum, on the other hand, is 95 parts pure platinum and 5 parts other alloys. So platinum jewelry is a much purer and denser metal-type than gold. As such, platinum jewelry costs more than gold,  not only because it is 60% heavier (a 10 gram ring vs. a 16 gram ring noted in #1 above), but those grams of precious metal are more pure, and therefore, more valuable and costly in platinum compared to gold. To explain this in one other way: 10 grams of 14k gold is going to still be more valuable than 10 grams of platinum, because in those 10 grams of metal, one is 58.8% pure and the other is 95% pure.

3. Labor & Demand. It generally costs a manufacturer more time and money to create platinum jewelry than gold jewelry. Platinum is more difficult to work with and is more labor intensive compared to gold. So even if the two above factors were not in play, platinum properties, such as the hardness level and pliability of the metal, are still in force, and therefore the labor costs of making platinum jewelry are higher than gold jewelry. Another reason for increased labor costs has to do with supply and demand. Since platinum is not in as high a demand compared to gold jewelry, not as much volume of platinum is produced and therefore some manufacturers must charge more to work on an item of jewelry takes longer to make and is not as often sold.

When you combine the three above factors, you see that even when the commodities price of both metals are at an equilibrium, platinum still retains its luxury status as the metal of choice for high-end jewelry.

So the next time you are in the market for that platinum or gold wedding band, which will it be?

Related Post: White Gold vs. Platinum

The price of silver rose throughout the 1970s, due to a high demand. It saw a huge spike late in the decade, rising to over $50 per ounce. Two brothers, Nelson and William Hunt, played a major role in this. Born into one of the wealthiest families in the country, they bought huge amounts of this precious metal, cornering the market. However, that price wouldn’t last long: within two months it had fallen back to $11 per ounce.

Several world political events, such as the Soviet invasion of Afghanistan and the U.S. hostage crisis in Iran, kept the price of silver fairly high through 1980, however it dropped throughout the decade to follow.

Like the price of gold, the price of silver is affected by several factors. When demand is high the price climbs and, conversely, when the demand is low the price drops.  For example, in the 1990s the price of silver followed an upward trend as demand increased by a much higher percentage than supply.

Inflation is also a major factor in the price of silver for two reasons. First, when the value of a dollar decreases, prices of everything from postage stamps to groceries to precious metals adjust to the dollar’s new value. Second, when a dollar doesn’t go as far, many consumers lose faith in stocks and tend to invest more heavily in precious metals instead. Thus, when the economy is hurting, the price of silver often rises.

This principle has been seen clearly in the first decade of the new millennium. Since 2001, the price of silver has been rising, from under $5 an ounce at the beginning of that year to over $30 per ounce by the end of 2010—at the time, the highest it had ever been apart from its spike in the late 1970s.

Between the beginning of 2009 and the end of 2011, silver actually performed better than gold, increasing its value at nearly twice the rate as gold. While the price of gold rose about 78 percent, the price of silver jumped a whopping 142 percent. As of March 2012, the price of silver remains above $30 an ounce, leaving many to speculate just how high it will go.

Related:  Sterling Silver Jewelry

Things to Check When Buying Jewelry Online 

Shopping for jewelry online can be one of the safest and most worthwhile experiences, if you take a few simple precautions prior to finalizing your purchase. Not only can you compare jewelry items from various jewelers side by side, by you can comparison shop to make sure you are getting the best possible price from a trusted jeweler. Not only will your selection be exponentially vast, since you have the global market at your fingertips, but you can shop from the comfort and ease of your own home, without a salesman influencing your decision (sometimes in a way that you may later regret).

Here are 5 simple guidelines that will ensure a safe, happy experience when buying jewelry online:

1. Be Sure to Read The Return Policy

Shopping online requires a little more responsibility on the part of the shopper. The first thing to check is the prospective store’s return policy. Do they offer a 100% Return Guarantee? What are the exceptions? How long do you have to return an item? Any serious contender should offer at least a 30 day return policy. Some online jewelers, like Apples of Gold, offer an extended 45 day standard return policy, a few others may even offer longer periods. Be sure to check policies on customized or personalized items, such as rings that you plan to engrave. If in doubt, call the customer service phone number and/or email customer service during off-hours.

2. Transparency 

How transparent is the company’s information? Is the “contact” page easily found? Or is the customer service number obscurely hidden? Is there an “about us” page that clearly explains the company’s ways of conducting business? Is there sufficient information on the detail page of each product? Most professional sites will also now have a jewelry blog and facebook page. All of these things communicate the idea that a company wants to be transparent about its brand values, its products, and its service.  Do not trust a site with little to no information that was quickly thrown up onto a web page with a few products. Professionalism and attention to detail can make all the difference.

3. Company Credentials

Does the jewelry company you plan to make your purchase from belong to any trade organizations or objective, third-party outfits that evaluate the efficiency of that business? Any reputable jeweler should belong, at the very least, to the Better Business Bureau and maintain a high rating. Customer reviews should also be present. What have past customers said about the jeweler?

4. Website Security

 Most websites are secure in terms of handling your credit card when they use Secure Check Out. But online jewelry companies, especially, should take extra steps when it comes to credit card security. Make sure there are added layers of security, such as Hacker Proof daily monitoring. This is just another indicator that a website is operating on an above par professional level, which means that it is more likely you can trust them as a whole. Websites must now also be PCI compliant, which means that the website’s servers and internal networks are scanned for vulnerabilities regularly.

5. Protection from Your Credit Card Company

This is sort of the consumer’s final trump card. If any jeweler fails to deliver on its promise, you can always seek the protection of your credit card company to dispute a charge that you deem unfair. You should always first try to resolve any issues with the business directly first; but in the case that a company becomes unresponsive to your legitimate requests, you can always call in your credit card company that you used to make the purchase (or Paypal if the merchant accepts Paypal) and dispute the charges. You are 100% protected in the case of non-delivery or if a jewelry store fails to uphold its own return policies.

There really is nothing to fear when deciding to shop online for jewelry. Just take the above steps and do a little research about the site before clicking the final Check Out button! Another quick tip: search the company’s name in Google followed by the words “reviews” or “scam” to see if any dissatisfied customers have written about their experiences with the jewelry company. But remember, even the best of businesses is bound to have a dissatisfied customer or two; so be sure to review the company’s overall rating and see if there are any repetitive patterns or negative trends that really stand out from customer to customer.

Then relax, sit back, and enjoy browsing through the many thousands of options that will open up to you when deciding to buy your jewelry online!

We think Jen did a great job! We’d love your feedback also!

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Just like the rest of us, diamond vendors have been suffering through this recession.  Various companies can be seen on the Internet, discussing their loss of profits as prices declined in the recessionary economy.  It’s interesting, isn’t it?  The price of gold increased because investors were uncertain and wanted the stability and certainty of gold in choppy financial waters.

But by the same token, they have pulled back from buying diamonds.   Prices declined, and so one of the world’s hardest substances has been hard for investors to gauge as well.

A certain amount of that is because of the system of buying diamonds in use.  The majority of the world’s diamonds are sold through the DeBeers company, which until a few years ago, tightly controlled the market through use of a cartel.  These days, things are a little looser on the market, but nonetheless, it’s a secretive and private industry which doesn’t like to open its doors to share information nearly as much as it likes to open doors to let well-heeled buyers in for a purchase.

Be that as it may be, when the recession deepened, many buyers at the retail level (where demand is generated) were simply buying smaller diamonds or not making the purchases at all.  So the prices have declined.  A few diamond mining companies have teetered or even gone into default because of the market slowdown.

DeBeers has been no different in this downturn.  The company has long-standing debt, and asked lenders for leniency (which was granted) for those debts.  But the slowdown continues to worry.  DeBeers is now restructuring its debt and its ways of doing business to address the concerns.

So what does this mean for consumers?  If the demand continues to decrease, the price of diamonds may fall accordingly.  There seems to be a recent feeling of hope in the markets that the economy is beginning to turn the corner.  But the trickle-down will be long in coming.

If an upturn in diamond sales is not soon realized, then consumers may see deflation come into play.  The prices of diamond jewelry could actually decrease and some real deals in diamonds be seen.

Which means that what has been a painful economic recession could turn out to have a bright spot.  Or rather in this case, a bit of unexpected sparkle.

Apples of Gold Jewelry’s Top Selling Products are now available for sale on Amazon.Com. So if you prefer “Checking Out” at Amazon, have Amazon Gift Certificates, or an Amazon account, you can purchase your favorite Apples of Gold Jewelry items directly on Amazon.

This was an exciting step for Apples of Gold, as not all jewelers are created equal–according to Amazon–and rightly so. In order for jewelers to list items on sale at Amazon, jewelers and their products must be “ungated” for the Amazon jewelry category. In other words, screened and approved by Amazon directly before being allowed to sell on Amazon.

The criterion for listing jewelry on Amazon is “proprietary”, but one can imagine what is required: in order for Amazon to protect its own brand, we can surmise that they take into account a jeweler’s brand, untarnished reputation, and a strict adherence to high quality product lines and customer service. A jeweler must stand above the fold.

In addition to the above metrics, Apples of Gold also qualifies with Amazon’s reputation of “getting a deal” or discount compared to traditional retail prices. Apples of Gold with its value-based pricing methodology fits the Amazon model of value and consistency for high-end quality products.

Apples of Gold’s inherent ethics policy and fine jewelry (Top Sellers) are now available on Amazon for purchase. See an item on Apples of Gold that you isn’t listed on Amazon? Contact us and we’ll have it listed for sale just for you!

About the Award Winning Ring

The gold-rimmed leaf spinner ring is crafted from oxidized sterling silver and features a matte yellow gold rimmed base. In the middle of the leaf-etched sterling silver ring lies a free-spinning thin yellow gold band that transforms the ring from special to extraordinary. It is easy to see why this unforgettable design captured the award, and at under $300 the ring is priced amazingly well.  The great price point makes its win in the $2,500 category even more exciting. If you love the design as much as we do, we suggest snapping it up before it sells out after receiving so much press.

More from David Tishbi 

David Tishbi’s collections are primarily crafted from oxidized sterling silver and accented with gold to create truly special, unique jewelry.  Though the leaf-print spinner ring received the Best Design award, Tishbi has an entire line of delicately handcrafted spinner rings to choose from.

We also love the quadruple gold spinner ring, the hammered 14K gold and sterling silver spinner ring, and the rose gold spinner ring. With such a variety of unique designs to choose from, it’ll be  difficult to choose your favorite.