Gold Prices Too High

Wednesday, July 20, 2011 - 8:45am

Skyrocketing gold prices have investors smiling, but jewelers and other retailers aren't as happy.

Gold prices are going up, up, up.

That's good if you're an investor in gold, but not so good if you're trying to buy or sell jewelry.

Today's rings and bracelets are more expensive than they were yesterday.

Jeff Bernard has been in the pawn business since 1969 and says higher prices can actually hurt things at the register.

"By being able to put gold and diamonds in peoples' hands for a fair, reasonable price, at $1,600, $2,000 based on $2,000 dollar an ounce gold, we're in a world of trouble," he says.

"It's like the price of gasoline going up, or the price of food going up and so forth. Everything's going to cost a lot more money," explains San Diego State University Marketing professor Michael Belch.

That's forcing shoppers to look for cheaper alternatives, gold-plated instead of solid gold or switching to silver or another cheaper metal.

And what about investors who have been buying gold?

"Yeah it's probably a good thing for them, but if you're a jewelry manufacturer, if you want to go out and buy your finance a wedding ring or an engagement ring, you're going to take a hit," Belch says.

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