Friday, 28th April 2006 (4697 views)

With the price of gold soaring and analysts predicting further rises to over $1,000 an ounce, gold jewellery shoppers have been handed an opportunity to make savings by Apples of Gold.

The internet-based company argues that traditional jewellers mark up the wholesale prices on items of gold jewellery by two or three times their value for sale to consumers and that if such mark ups were not widespread across the industry, savings could be made.

Apples of Gold claims that by offering gold jewellery for sale on the internet, it can cut a good deal of the price off the traditional keystone pricing (doubling or tripling the base market value of an item) due to the lower running costs involved.

By not renting retail space, just storage space, the company makes savings that it can then pass on to its customers, the website claims.

If the price of gold continues to rise, with the mark ups they offer - typically 30 to 45 per cent of the wholesale cost - discount and online jewellers could see their sales figures rising quickly while the gold jewellery market begins to show a downturn, the company concludes.

 

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