Warsaw Association of Goldsmiths

18Aug

Monsoon and Lower Prices Will Increase India’s Gold Jewellery Demand this Year

Indian jewellers are really optimists about the upcoming Diwali and wedding season. For Indian people, purchasing gold jewellery and coins during these two yearly events it’s a priority that no one with economic possibilities can miss. And this year, it will not be different.

Despite all the chaos around the world, including at the financial markets, gold remains fundamental in this traditional culture. The significance behind gold for India goes beyond the financial safety it provides in both times of calm and uncertainty but because of its beauty and spiritual value.

Public reports are showing, year after year, that Indian demand for gold is on the rise. With a bigger percentage of well-educated citizens, India is valuing more a more this precious metal.

Now, with an extremely prosperous monsoon this year and slowly falling prices of gold, jewellers are expecting a really profitable final quarter. In recent months, a strike in this sector was hurting the economy but that conflict was partially solved in order to face the upcoming commercial challenges.

The Role of the Weeding Season

For foreign people, the Indian wedding season could seem too extravagant. For locals, it’s a tradition that should be respected at all cost. After Diwali season every year, weddings begin, involving a great deal of gold jewellery.

This tradition that seeks prosperity and good luck for each marriage involves a massive demand for the precious metal. Published reports say that the average Indian wedding has around 35 percent of its budget dedicated to buying gold jewellery.

With this happening altogether within a few weeks, it’s normal to see a great boost in gold prices. Based on this fact alone, forecasts regarding sales are overwhelming.

The Role of the Monsoon

Without a good monsoon, the Indian economy is more fragile and susceptible to suffer big losses. Fortunately, this year’s monsoon was spectacular, filling farmers’ pockets beyond expectation.

This isn’t an isolated event. The performance for seasons like Diwali or the wedding one are linked to monsoon every year. When the monsoon isn’t that favourable, gold demand goes down, making these festivities less ostentatious and luxurious.

In fact, both local and foreign analysts consider that this year’s monsoon will allow the biggest gold jewellery demand during Diwali season in the recent four years.

A Race with China

Despite this strong tradition, the gold jewellery demand during the second quarter of 2016 wasn’t led by India. According to reports, China had 83.8 tons in consumption of gold jewellery, defeating India by more than 10 tons.

The second place in this race was dominated by India, of course, with 69.2 tons. Experts are sure that these Dewali and wedding seasons will change these results. That isn’t hard to believe, having in mind that gold consumption is among the highest priorities for most families.

According to an FICCI Gold Survey in 2013, gold jewellery and coins were more important clothing, utilities, consumer durables, and entertainment for the average Indian household.

Sources:

http://www.forbes.com/sites/greatspeculations/2016/10/17/monsoon-of-demand-expected-to-drive-indian-gold-jewelry-sales-to-four-year-high/#30edc2e860e8

http://www.investopedia.com/news/top-10-countries-highest-demand-gold-jewelry/

http://www.commoditytrademantra.com/gold-trading-news/gold-jewelry-buying-to-be-exceptionally-strong-in-india-this-diwali/

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26Feb

Gold jewellery industry terms of reference

Jewellery Jargon

When it comes gold jewellery there are a lot of technical terms that may not be as clear to you as they are to jeweller. Here is a list of general terms that are used by jewellers that will give you a better perspective about jewellery.

Karats

The term karat is a measurement system used by jewellers to establish the purity level of gold in jewellery pieces. The karat system is based on a 24 part scale which means 24 Karats = 100 % and hence 12 Karats would mean 50 % based on the calculation 12/24 x 100% = 50 %. Now that this has been explained as an example if a gold necklace is said to be 18 Karats gold and weighs 50 grams for instance, the total gold content in that necklace can be calculated as 18/24 x 50 grams which would be equivalent to 37.5 grams. The total amount of gold contained in that necklace is only 37.5 grams, the remainder 12.5 grams is probably some other metal that could range from copper to zinc or silver.

24 Karat: 99.9% Pure
22 Karat: 91.7% Pure
18 Karat: 75% Pure
14 Karat: 58.3% Pure
12 Karat: 50% Pure
10 Karat: 41.7% Pure

Alloys

Alloys are basically combinations of metals and most gold jewellery is alloyed in order to harden them as pure gold is too soft to turn into jewellery pieces.

Annealing

When jewellers work with metals and repeatedly subject them to press pressures, they become brittle and thus they ‘anneal’ the metal by heating and cooling the work piece in order to restore its malleability and ductility before continuing work on it.

Assaying

Assaying is a term used for testing the purity levels of alloys containing gold in order to determine its karat and affording the jewellery piece an appropriate hallmark.

Fineness

Fineness is a bit like karat with the only difference being it relates to the proportion of silver or gold in a given metal alloy which is expressed in parts/ thousand. For instance the fineness of sterling silver is .925.

Hallmark

This is an indication of ‘who’ the maker or manufacturer of a jewellery piece is, and the content of precious metal in a jewellery piece.

Rolled Gold

A process that was invented in the 19th century which involves a thin gold sheet laminated unto brass and heated in order to fuse them together. The alloy is then used to make jewellery which wears well and is durable despite the low content of gold in it.

Yellow Gold

Gold that contains a mixture of both copper and silver in equal parts.

White Gold

White gold jewellery is made from a combination of pure gold and white metals which include zinc, nickel, platinum and silver. However, white gold jewellery is known for being brittle despite it being durable and highly resistant to tarnish, to overcome the brittleness, jewellers use platinum or rhodium plating.

Rose Gold

Rose gold jewellery are alloys that contain gold and copper at a ratio of 3:1 in general. However, this ratio is at times adjusted by the jeweller to attain a different ‘tint’ for the jewellery item.

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18Dec

Alloyed Gold

Among all the natural elements found on the planet gold has stood out as the most elegant metal that has been treasured for its natural splendour and vivacity. It is due to this fact that gold has been regarded as a representative of the life giving sun by many cultures. Among the camaraderie of golden hues, yellow gold is and has always been the most popular colour throughout history, but at present gold is made available in a diverse range of colours through alloying processes. For those who are not familiar with the term alloying, it I a process whereby other metals are mixed with pure 24 carat gold which makes gold which soft in its pure form, much more durable.

The range of colours that gold come in depends on the type of metal that is missed with pure gold, for instance white gold is created by alloying pure gold with palladium or silver which gives it the metallic shine and sparkle and in most cases rhodium is used to plate the piece in order to create harder surfaces on top of giving it even a brighter glow. However the demand for different types of gold a usually depends on the region, white gold is a favourite for wedding bands in the US while rose gold is much more popular in Europe. Rose gold is a mix of copper which gives it the soft pink complexion and the hues of rose gold are entirely dependent on the amount of copper added. Other atypical colours such as blue and purple are created by adding patinas or oxides to the surface of the alloy and the more adventurous black gold gets its colour by fusing pure gold with cobalt oxide.

The prices of gold pieces such as jewellery or artefacts are always determined by other factors besides the value of gold itself, these factor include (but not limited to) the designer (brand is a major price determinant in the industry), the intricacy of the design and the value of other precious metals that might have been included into the mix (platinum, palladium, silver, etcetera). Regardless of what metal the pieces are mixed with, the purity of gold is always the constant and it is measured in terms of carats. The measurement is relatively simple as it is based on a 24 part scale. This basically means that when a piece (jewellery, or trinket) containing gold is imprinted with 18K, it simply means that 75 % of the total weight of that item is gold. The formula is 18/24 x 100 = 75 %. Thus the remaining 25 % is ‘other metals’ and the value for that piece will be based on the content of gold and the current spot prices.

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18Nov

Purchasing Gold Jewellery

Gold is a standout amongst the loveliest uncommon metals on the planet. The way that it is for all intents and purposes indestructible combined with the way that it doesn’t stain makes it immaculate as a decoration on the human body. The skin cordial metal does not consume or cause antagonistic responses from the wearer’s skin as gold is as resigned as quietness can be extended. Not just does the utilization of gold end with making things wonderful it is additionally a type of riches stockpiling and it is not exceptional for countries to store gold in their vaults to build the budgetary believability of the country.

So when you choose to purchase gold adornments there are a couple of fundamental truths that you ought to think seriously about or rather know before you purchase gold gems. Most importantly the individuals who purchase gold adornments won’t just be paying for the quality gold in weight additionally for the artisanship which at some point can without much of a stretch come up to 30 % over the expense of the bought gold in weight. Be that as it may, regardless of what happens, adornments purchasers can be rest guarantee that the net weight of gold that is contained in the gems will hold its quality for a considerable length of time to come and as a general rule may wind up being worth a great deal more than the buy esteem inside of a couple of years without uncertainty. Gems purchasers basically need to know the amount of gold in a gems piece and the standard arrangement of looking so as to measure gold amount in adornments is at the karat estimation of the gold.

Usually most any gold adornments will be checked with 18 K, 14 K, or 10 K, the K or Karat speaks to the amount of unadulterated gold in the blend of the combination used to make the gems, fundamentally the higher the karat, the higher the rate of gold contained in the composite (amalgams are distinctive metals combined). Unadulterated gold is 24k which is trailed by 18K gold which contains 18 sections of gold with 6 sections of different metals that give the gold conclusive shading and the same mathematical statement is connected to 14 K gold (14 sections gold and 10 sections of different metals). Moving down to 12 Karat gold which is 12 sections gold and 12 sections different types of metal (half gold) lastly 10K which is 10 sections gold and 14 sections other metal.

The most minimal class for adornments that can be alluded to as gold is 10 K in the United States. Alternate metals that are blended with gold give the gems pieces feeling and on occasion the estimation of gold in weight is figured with different valuable metals, for example, platinum or silver.

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30Oct

Gold Jewellery

People buy jewellery made of gold in particular due to their ultimate trust in gold. However most jewellery is not entirely made out of gold and the use of other metals are common in order to give the jewellery pieces different hues and also simultaneously hardening them. The shade of gold jewellery is because of the blend or blend of metal that is included into the jewellery pieces and as most of us already know, gold content is regularly checked with the K image for karat that lets us know the amount of gold is contained in a bit of adornments from a sum of 24 sections which is unadulterated gold. In this article we will investigate the ordinary blends that gem specialists or goldsmiths use to give gold gems their particular hues. Before that it is vital to realize that immaculate gold is soft to the point that it can’t be made into gems as it will rapidly lose the shape and it is because of this reason different metals are added to gems to solidify the gems and make them last.

Normally the most usually utilized metals that are blended with gold to make adornments are Copper, Silver, Zinc, Nickel and Palladium and each one of these metals give gold an alternate brilliance or mood in similarity. Copper is typically used to give gold a blushing impact and the more copper utilized the redder it turns out to be, along these lines lower karat (less gold to a limited extent) will generally give a redder tone and silver then again is utilized to give the gold decorations a greenish tone. Zinc is generally used to give gold a faded look and palladium is utilized to make gold look or appear whiter.

Different strategies that are utilized by gold smiths to give gold gems adding so as to shade varieties is diverse amounts of distinctive metals to shade or tint the gems pieces, for instance to give gold a glimmering yellow sparkle the blend of metals utilized are copper, silver and zinc that is added to the gold (as a rule (18 K) and for white gold the fixings added to the gold are nickel, manganese, palladium, zinc and copper. For rose gold or red gold they simply utilize immaculate gold and copper. Green gold contains just gold and silver. Another certainty that gold gems purchasers ought to know about is the distinction between white gold and platinum, they are not the same.

White gold is a blend of the metals said above, though platinum is really a metal that is much more rare and in this way a greater number of valuable than gold. Platinum is additionally much heavier than gold and as adornments it is blended with the platinum gathering metals, for example, iridium, palladium, ruthenium and osmium. Platinum adornments is as tough as gold and really costs more at buy; however the resale worth is much lesser in the middle of purchasers and merchant if contrasted with gold.

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26Aug

Gold – Symbol of Opulence, Prosperity and Purity

For eons, gold has been and still is among one of the most treasured precious metals on the planet.

It is not only a brilliant adornment to wear, but in many circumstances doubles as a hedge against inflation and fractured or fracturing economies on top of the ease that it could be liquidated at the drop of a hat. However, the primary bulk of the mined gold on the planet is directed towards the jewellery trade as people just love to wear gold and it is due to this very reason that there are some things that you should pay attention to when you go out and buy gold.

When it comes to buying gold jewellery the most important thing that gold buyers need to understand is that there are variations in gold that are determines its purity, quality and price on top of gram weight and design. Purity of gold jewellery is usually indicated by a marking on a gold jewellery piece that is determined by karats. It is actually a very simple concept, whereby 24 k = 100 % gold and anything below 24 k has a mixture of other metals, for example 18 karat gold jewellery will contain 75 % gold and the remainder 25 % will usually be a mixture of other metals (Usually common metal, such as zinc, copper, nickel or precious metals such as platinum or silver) that give the gold jewellery piece its colour tone and hardness.

As for the price of gold jewellery pieces such as chains, earring or necklaces, it is determined by not only the purity of the gold but also its weight and the alloy it is combined with (for instance if it is combined with silver, it will be worth more than if it is combined with copper) not to mention the amount of skill and labour that was exerted on the particular piece of jewellery (reputation of the goldsmith also plays a role here).

As for the colour of jewellery that contains gold (yellow gold, white gold, rose gold etcetera) it all depends on the mix, for instance combining pure with white metals, such as palladium or silver in combination, creates white gold which has become the preferred choice for wedding bands in most parts of the world. On the other hand if pure gold is combined with copper, it produces a distinct soft pink complexion which is more popularly referred to or regarded as ‘rose gold’ and although there are other varieties of gold that come in a wide range of colours that include, blue, green, black and purple, the most popular gold colour has and perhaps, will always be yellow gold which is noted for its distinct and mesmerising rich yet subtle characteristics.

Another factor that is worth noting when it comes to buying jewellery such as wedding rings or bands, necklaces, bracelets, earrings or anklets is identification of the piece. Most branded jewellers usually have a stamp or mark that indicates not only the karat, but also the jeweller themselves which is controlled via the hallmarking system under the Vienna convention of 1972.

Based on the fact that buying gold jewellery depends a lot on trust, buying jewellery from a reputed gold dealer would be an advisable approach towards buying and owning a good piece of jewellery as they do not only ensure the reliability and the authenticity of the pieces, but they also attach the pieces with ‘value’ that could be redeemed upon resale to individuals who appreciate jewellery craftsmanship.

Selling authentic jewellery pieces to gold refiners and second-hand gold dealers is never recommended as the ‘craftsmanship’ value is omitted from the piece and only the value for the gold content is offered to sellers.

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26Aug

Buying Jewellery

When it comes to jewellery, most of us are torn between how they look and what they cost making it extremely difficult to make a decision. It is because of this that it is always better to have some general idea of why you are going to the jewellers and how much you will be able to afford before you walk into the jewellers.

First and foremost it is essential that you understand and sink in the fact that everyone has a limitation in terms of budget, thus before even going to the jewellers it is good to determine your budget’s high and low. Once you have determined the maximum and minimum that you are willing to spend on a jewellery item, you should essentially do some homework on specifics relating to brands, designers and market prices of not only precious metals but also precious stones if at all you are planning to get a jewellery item that has stones on them. Before moving on to the nitty-gritty details of buying jewellery the most important thing that you should be aware of is that when you buy jewellery it should never be considered as an investment for a number of reasons.

Firstly when you buy jewellery made up of precious metals (without precious stones) you are not only paying for the gold, silver, platinum or palladium content, but you are also paying for the jewellery design, the cost of business operations and other miscellaneous costs that the jeweller incurs to run his business. These costs are never included in the resale value as gold buyers only pay for the gold or other precious metal content in the jewellery as more often than not the jewellery piece will be sent to a refinery where it will be smelted.

Designer Jewellery

Designer jewellery often involves the use of gold, platinum or both. One reason why platinum is often the preferred precious metal by high end jewellers is due to its ability to compliment diamonds and other precious stones. Gold on the other hand is often used for pure metal designs that at times include a blend of platinum, palladium or silver if precious stones have been incorporated into the design.

The ring depicted on the left is a 3 hue 18K yellow gold, 14K rose gold and 18K platinum ring that has been crowned by a Cartier diamond. The retail price for the ring is 12,000 dollars with the diamond making up 60 % of the cost, while 25 % of the cost is attributed to the precious metal content and the remainder 15 % is accounted for design and overheads.

Similarly the ring depicted on the right costs a mere 3000 dollars with the same precious metal makeup but without the precious stone. Although it costs much less and does not have a precious stone embedded in it, the ring on the left won the ‘best wedding band design award for 2013. Buying designer jewellery should not be driven by ‘trend’ based factors; instead it should be based on personal preferences that ought to be within the individual’s affordability range.

Buying an expensive piece of designer jewellery ring only because others have it can be the most foolish thing that an individual could do in their lifetime, only because the piece of jewellery will remain a constant reminder of paying for something that you sincerely do not find attractive. If you do plan to buy jewellery for someone else besides yourself, it would be best to buy plain jewellery that contains more precious metal content rather than intricately designed jewellery riddled with stones.

Understanding Karats

Surprisingly many people who mention the word karat when talking about jewellery made from precious metals have very vague ideas of what they actually represent besides knowing for a fact that the higher the karat the more expensive the piece of jewellery is. The simplest way to explain the karat measurement is to know that the highest karat is 24 Karats.

This basically means that an item consists of 24 parts out of 24 parts of the same substance and thus when an item is referred to as 22 karat gold, it simply means that 22 parts out of 24 parts of that item is gold with the other 2 karats consisting of some other substance. In terms of calculating the percentage of an item that is 22 karats, one simply divides it by 24 and multiplies it by 100 i.e. 22/24 x 100 = 91.6%, thus a 22 karat gold ring that weighs 10 grams for instance would contain 91.6 % gold with the remainder 8.4 % consisting of some other material, therefore a 22 karat gold ring that weighs 10 grams would only contain 9.166 grams of gold i.e. 22/24 x 10 grams. To make it even simpler the table below converts karats into percentages.

24 Karats 100 % gold

22 Karats 91.666 % gold

20 Karats 83.333 % gold

18 Karats 75 % gold

16 Karats 66.666 % gold

14 Karats 58.333 % gold

12 Karats 50 % gold

10 Karats 41.666 % gold

The lowest content of gold for jewellery to be considered precious metal based jewellery is 10 karats. Second hand jewellery buyers often have a table with the prices that they offer for each karat class.

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26Aug

The Wedding Ring

The wedding band or ring is a symbol of holy matrimony, it indicates that the person who is wearing it has been ‘taken’ and they ‘belong’ to another individual of the opposite sex mentally and physically. From a cultural aspect the ‘wedding ring concept’ is believed to have originated from Europe, however, the custom has spread far and wide and in the current day and age it is practiced by almost every other culture on the planet. In the beginning, it was only customary for the bride to wear a wedding ring, however as women became more liberal the custom eventually transcended and men were required to wear a ring as well. The centuries old tradition has become the defining factor between the vows that are exchanged between husband and wife. However, how the ring looks, feels and costs is a different ballgame altogether.

Wedding rings are usually forged in gold with intricate designs that are suited to the wearer’s sense of fashion; however wedding rings are not always made of metal, some cultures use wooden or marble rings and the Chinese are known to use jade, however gold remains to be the most popular choice for rings. The price of the jewellery piece ultimately depends on the composition of the jewellery which the bride and groom choose. White gold, 18K, 22 K, platinum, titanium and a variety of other precious metals are all candidates of the wedding band. Buying a wedding ring has always been considered the ‘highlight’ of a couple’s path towards holy matrimony and it is usually a costly and keeping within a predetermined budget is also one of the most important aspects of getting married as couples venture into the world together as a team and start their family from scratch. There are a variety of ways that couples could procure a wedding ring that is not only within their means, but also cost effective.

Instead of buying gold rings that are decorated with gem stones (which would make the price of these rings increase exponentially), opting for simpler and bland designs that would remain in fashion for a long time would be a good approach if a budget needs to be observed. Typically a gold ring would weigh between 10 grams to 40 grams depending on size, however when jewellery is concerned the price paid is not only for the precious metal, but also for the design. Thus a simple straightforward plain design (without gemstones) would cost much less than a ring that is intricately designed. Bear in mind that intricate designs do go out of fashion and thick rings that are heavy, are not only uncomfortable, but also cumbersome as the designs jagged edges may snag clothing items and tend to get knocked around a bit more than smooth plain designs that are not only cheaper, but much more comfortable to wear. Thus it is better to choose a wedding ring that will represent the marriage’s long term objective – smooth and un-obstructive.

If gold is beyond your means, silver wedding rings could also do the trick; after all, it is not just about the ring, it is about, you, your partner and the lifelong commitment. Silver rings would cost less than a hundred dollars as opposed to gold rings that might cost and easy thousand. So if you have budget constraints, don’t fret, be honest about it to your partner and get a silver ring for the time being as an upgrade on your 1st, 5th or 10th anniversary is always possible. You will not only have a lot of time to save up for it, but it will also come as a wonderful surprise and reignite the flame of love!

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26Aug

Tying the Knot

A wedding is a one of the most important events in an individual’s life and generally it only happens once. Everything that happens on that day is a cause for concern, from the attires, venue, the theme, the band, the cake, the seating arrangement, the caterers, the guest list and even the wedding ring, everything becomes a singular priority. As far as the attire goes, it has to not only match the theme and jewellery but also the decor. The cake supplier and the caterers on the other hand must at least have a proven track record with previous occasions and if you are planning to have a band – jazz always works.

If we were to take a step back and look at the entire event, not even one of the elements mentioned above is as sacred as the wedding ring! The epitome of the event is when that piece of jewellery is worn by the bride and groom and they are proclaimed ‘man and wife’ – they have tied the knot!

Selecting a wedding band has more to it than most people think and it should be so as the wedding memories fade, the ring remains on your finger as a constant reminder of that beautiful day and you will be wearing that ring for the rest of you natural life. No matter what people say, if you need something to last as long as ever, it should be made of gold, gold does not tarnish over time and will retain that shine (provided it is at least 18 K gold or above, the lesser the karat the lesser the gold content and mixing gold with too much of another element – will cause the alloy to lose its shine as the other metals oxidize).

Choosing the gold ring is another aspect of the wedding that should be given much thought as it will remain in your hand for a long time and you would not want the piece to run out of fashion too fast and neither would you want it to be an uncomfortable piece. However, all this depends on your budget and the simple truth is wedding rings can be extremely affordable, if
you knew the essence of it. Wedding rings embedded with precious stones are not advisable due to the fact that it is not only expensive, but over the course of time you might lose a stone or two and replacing these stones or getting them refitted can prove to be a daunting task. Thus, the best way to go about it is to get a wedding band that is elegantly simple and made up of 18 – 22k gold that will not only cost much lesser, but would also maintain its shine basically forever.

Another option is to go for platinum (if you prefer ‘silverish’) and although it might be a bit pricey (but still cheaper than gold) it too behaves much like gold and does not lose its gleam or shine and will remain ‘loyal’ to your fingers. As for the groom, titanium would be a good option as it is not only cheaper than gold, but it also has a much more ‘manly’ nature to it. However, the most important thing to remember when you tie the knot is the vows that you make, it is much more important than any other factor of the wedding. The gold ring, the grandeur of the occasion and the well wishing guests will not be there when things will get tough and they will! As the old adage goes when the going gets tough, the tough gets going!

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