Regardless of whether the price of gold is at an all-time high or at an all-time low, the fine gold jewelry you find at the prominent jewelry stores are going to cost you. But keep in mind, fine gold jewelry is not only a keepsake, but it is also an investment. If you had bought a $4,000 gold necklace in May of 2008 from a reputable jeweler who did not rip you off then that gold necklace would be worth much more today. Of course, the price of gold can go down just as quickly as it goes up. But unless you are a commodities trader on the Chicago Mercantile Exchange (CME), you don't need to worry too much about that. Nevertheless, you need to be aware.
When it comes to fine gold jewelry, you can't go too far wrong unless you are an uninformed buyer. If you are going to be spending more than $500 on any jewelry purchase then it is crucial that you do your homework. It is not uncommon for someone to walk into a jewelry galleria and walk out with a $2,000 fine gold jewelry necklace that could have been purchased for $1,500 in the same galleria.
When it comes to buying any kind of jewelry, but especially fine gold jewelry, you need to understand that commodities are fairly volatile and retail and wholesale jewelers want to minimize their costs as much as possible. If they thing the price of gold is going to increase 25% in the next year, they are going to price that into their jewelry. How do they do that without losing market share to their competitors? Well, the answer is similar to how the airlines pick up a few bucks. They charge as much as they can to the uninformed buyers (those that overpay for first class tickets and those that overpay for jewelry) because they know that they may have to sell below market to the informed buyers if they want to make the sale. They hope that overcharging the uninformed buyer will offset the deals they cut to their loyal clients. Of course, not all jewelers practice this kind of methodology. But if you are a buyer, don't assume that the jeweler is going to cut you a deal just because they pity your ignorance.