This is why I like the way gold/jewellery stores work in asia. All the jewlellery is marked as being a % over spot, depending on the work that has gone into it. Unlike westerners, they havent lost touch of the true value in the piece of jewellery - the precious metals. I bought my gf a lovely pair of earrings for her birthday today. They are 18k and in a nice floral design.... 10% over spot.
Value is subjective, but it is also a reflection of labour costs, materials, rent, advertising. Don't be too harsh on our jewellery retailers, their mark up is no different to the mark up any other retailer puts on the goods they sell. It's far easier driving to your local shopping centre to buy a ring for Mum or your latest GF than it is to fly overseas and purchase the same. You just happen to have knowledge of the wholesale price of gold which gives you an insight into the pricing structure. I usually don't buy from jewellers (if I do it's when gold is half price), but I never bag them for trying to make a profit, they serve a need in our market. Edit to add: Stacknpiles's view of jewellers is screwed. FFS, does he begrudge paying butcher's $20/kilo for meat that costs just a couple of $$$. Edit add again: Just thinking, Stacknpile lives in the UK, he probably has to pay $60/kilo for decent meat LMAO
I am no communist, I definitely dont begrudge profit. But there does come a point where profit taking becomes predatory, preying on the ignorance of the masses. The main point I was making about buying elsewhere in the world is that there IS awareness of the gold/silver price. In these jewellery shops there is a screen with live updates on spot. The price isnt set, it is calculated on spot when you walk in, plus a percentage for workmaship.... I personally find this model far better and more importantly, honest. There is nothing stopping a jeweller in Aus doing the same and simply having higher percentage markups to account for higher costs, but once the makrups are exposed to the masses, the game is up and they dont want that. I dont want you to think I am outright attacking jewellers, as I would secretly love to be one (maybe one day). I just think there are better ways to do retail jewellery.
I don't have a problem with someone making a profit. I'm not keen on people making comparisons since the point being made is often lost in the transition from the case in point to the comparative used. A jeweller is not like a butcher. Using your comparative to help me explain my point, a butcher buys meat and sells meat. Sure, he covers his costs and makes a living. That is ok. A jeweller buys metal then seeks to sell what he does not have. I called this "expressions of love" in my original post. It is one example of something they seek to sell. I believe de beers are famous for developing the marketing around diamonds. Before they did (and cornered the market too) they were just the common stones that they are and no one was bothered about them. If it's any consolation, I have a similar view about designer things. I am in Asia right now and excellent fake t shirts can be bought for 2-3. I expect there have been a few people making their profit before it's sold to a tourist. Based on this price, I guess (conservatively) the cost of manufacture of a Ralph Lauren t shirt to be less than 1. They are sold for over 60 in the UK. Sure mark up for import costs, taxes and even if you add advertising to create a brand (so you can sell a lifestyle rather than just selling a nice shirt). Whichever way you slice and dice it, 60 isn't a fair profit, it is ridiculous - whatever it is you deem yourself to be selling. Which is why I don't buy designer gear. Also most of it looks chavvy I also don't wear any jewellery but that came about because I spent most of my formative years assuming that men didn't because my dad doesn't - he developed the habit of not having any as he was an electrical engineer and wearing jewellery was banned at work for safety reasons. But I digress... By the way, I don't expect everyone to agree with my views. That is fine. We all have our own views. But I hope that I have explained where I am coming from.
