4 thoughts on “Why is the price gap between gold prices and gold jewelry so big?”
Shaun
Where does the gap between the price of gold and the gold jewelry come from? It will start from around 1998! At that time, the gap between the price of gold and jewelry was only about ten yuan. The percentage gap between this percentage since the price of gold has been rising. Intersection Why is this so? There are several reasons: 1. Set up fees; 2. Machining fee; 3. Intermediary fee; 4. The most serious risk fee Merchants choose consumers to bear this fee! For example, the former merchant bought gold for jewelry. In the warehouse for some time, for another period of processing, if the gold price market is reduced, then the merchant is much more expensive to buy! Who will bear this cost? The old saying that "wool is out of sheep" merchants put risks to consumers, and consumers have no way to buy jewelry, unless you don't buy it to buy gold bars! As a consumer, the risk cannot be borne. Will the merchants have no consumer dividends when the gold rises?
Where does the gap between the price of gold and the gold jewelry come from? It will start from around 1998! At that time, the gap between the price of gold and jewelry was only about ten yuan. The percentage gap between this percentage since the price of gold has been rising. Intersection Why is this so? There are several reasons: 1. Set up fees; 2. Machining fee; 3. Intermediary fee; 4. The most serious risk fee Merchants choose consumers to bear this fee! For example, the former merchant bought gold for jewelry. In the warehouse for some time, for another period of processing, if the gold price market is reduced, then the merchant is much more expensive to buy! Who will bear this cost? The old saying that "wool is out of sheep" merchants put risks to consumers, and consumers have no way to buy jewelry, unless you don't buy it to buy gold bars! As a consumer, the risk cannot be borne. Will the merchants have no consumer dividends when the gold rises?
Gold jewelry requires design costs and processing costs. So it will be more expensive.
Gold is a commodity, and gold jewelry is a craft, which is the difference.
Switching costs of jewelry