Monday, March 2, 2009

The Cost of a Cute Look

Watching TV, you may have caught sight of some commercials asking you to trade in your gold jewelry, hubcaps, toothbrush, what-have-you for cash. If it's made of gold, send it in! If you caught the Superbowl, you probably saw the commercial with Ed McMahon and MC Hammer hocking gold albums, gold microphones and the like. Pop the gold items into an envelope, mail them in, and once it's been appraised you'll get a check in the mail. Remember?

*This is not an endorsement of

Thought so.

These ads started popping up more frequently when the news broke that the economy wasn't doing well. But there's another reason why you're seeing these ads-- commodities trading. Gold is like crude oil and pork bellies. It gets sold between traders and the complex forces related to supply and demand and speculation -- and perhaps a touch of voodoo-- determine the going price for an ounce of gold.

What happens when you send in your gold is they pay some amount of money to you, and then hold on to the gold waiting for the price to go up. Once the price has gone up they sell the gold and make a profit.

"Ok, but really what does this mean for me?" you query.

It makes the jewelry you buy more expensive. As the price of gold goes up, it costs more for the jewelry manufacturers and they don't have much choice, a wild fluctuation in the price can easily wipe out profit margin and more, so this means they have to increase their prices to keep their companies going.

"Bummer!" you say.

We agree.

"But what does all of this have to do with Relios?" you ask. "Relios doesn't work with gold very often."

That's true, but other metals, like copper, platinum and silver undergo this same frustrating process. When Sincerely Southwest® started on QVC, which is celebrating it's 6th anniversary this March, the average annual price for an ounce of silver was close to $5. Just two or three years ago, this average went way up. During March 2008, the price of silver was nearly $20/oz, and the annual average for 2008 was close to $15/oz. This has had quite an impact on our pricing.

How crazy can it get?
In the 1970's, Nelson Bunker Hunt and William Herbert Hunt tried the corner the global market on silver. Purchasing silver at $11/oz, their speculation drove the price of silver to an all-time high of $48/oz in early 1980. Then in an event known as Silver Thursday (March 27, 1980), the silver market collapsed. The price of silver dropped to below their original $11/oz purchase price. They lost a fortune.

P.S. -- Football fans might recognize the family name, their brother Lamar Hunt founded the American Football League and Kansas City Chiefs football team.

"Well, what can you do about this?" you ponder.

Here's what Relios is doing. While we consider the fact that our jewelry is made here in Albuquerque, NM USA to be part of the value of our jewelry, we want you to continue to enjoy our sterling silver jewelry. What good is it to just look at new jewelry you want, when you could be looking great in it?

Vista Colorful Gemstones Southwestern Ring
Flamenco Silver Fans & Coral Earring

In March 2009, we are pulling back the curtain on eight (8) new jewelry collections! These are going to feature some items at a lower price point, making it easier for you to get into the new collections. If that's not enough to entice you, we have a great offer for you! When you buy two pieces in a collection, you get a third piece in the collection for free (starts March 1st)! We have one more thing for you too! When you shop, look for Sincere Complements. These items complement other pieces in the Sincerely Southwest® catalog at a price that is better for your budget.

So when March rolls around, be sure to keep your eyes open for these new jewelry collections and great deals from Relios Jewelry.


Anonymous said...

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sandyxxx said...

This was by far one of mthe most thought provoking merry go rounds we've had. Im still not convinced I am all done

thingking it through.
I think the amount of detail and the stricking color combinations you use are your trademark. Unique style that sets you

925 sterling silver

Mary said...
This comment has been removed by the author.
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