The price relationship between a fine piece of gold jewelry and the gold content generally isn’t all that predictably strict anyway. It’s true that as the ounce price of gold rises or falls there is somewhat of a price shift – admittedly, this occurs most readily when your price is going up in response to a change.

Gold jewelry, for the most part, is priced for the creativity, workmanship, and exclusivity of an item. Stock items such as engagement rings, earrings mountings, etc. reflect gold ounce prices most.

Please remember that gold is primarily a commodity. There is an international market for the metal with publicly published prices. Because this price changes daily- and in quick response to every crises, minor or major, in the world- its gyrations are, to be sure, volatile.

The jewelry industry operates essentially on “gold price on date of delivery.” That means that manufacturers, wholesalers, and retailers, don’t know one day to the next what their gold purchases – or unfilled orders- are going to cost. When the order is filled from a supplier, the daily gold price is consulted and the metal is priced accordingly.

Retailers do their best at adjusting store prices to…