Get this: the price of your engagement ring could be impacted by the coronavirus.
Yes. You read that right.
Today, the price of gold skyrocketed to nearly $1700 an ounce. That’s close to a 7 year high.
The primary reason for that spike is a drop in the stock market, driven by fears over the coronavirus.
Investors worry that the virus, which was once fairly contained in China, has now spread to Italy and South Korea, and might expand from there.
Aside from the obvious threat to human health, those on Wall Street fear that will squash economic growth, potentially world-wide.
As traders sell off on Wall Street over that concern, many turn to gold. It’s often seen as a reliable safe haven for investment during downturns in the stock market.
As more people buy up gold to protect their wealth, the price goes up.
Now, back to how that impacts you.
When the price of raw materials, like gold, increases, the price of goods made from those materials also goes up.
So, if you tried to order a gold ring today versus last week, you’d pay more.
That might sound all bad, but it’s not.
For starters, it’s a reminder that when you purchase jewelry it is a true investment. Something that will hold its value over time, unlike a car which drops in value the moment you drive it.
It also means that there is value to be found by shopping in store. We do not re-price the beautiful jewelry that we have in our showcases every day. It is given one fair price based on an average cost of gold.
Remember, there are also other metals that can be used in place of gold.
Platinum, for example, is currently priced at $965 an ounce, quite a bit less than gold.
The price of metals is constantly changing, so if you do plan on special ordering a piece, keep in mind that will be impacted by both swings and dips in gold valuation.
You can track the price of gold every day on our website.