When the financial markets are in flux, as we saw earlier in this month, the good old standby of liquid commodities such as gold and silver rise as investors fear devaluation of paper currency. This amounts to scooping up large quantities of gold and silver. Subsequently removing and hoarding it against any financial instability. Recently, the Asian markets have felt jittery with the economic slowdown in China and the result has been scooping up gold and silver from the marketplace.
Can there be a real shortage of gold and silver? Chris Marchese suggests not, at the same time recognizing that supply and demand are not the only factors that comes into play in his article “The Gold and Silver Shortage?”
What does this mean to the fashionista?
Expect to pay more for jewelry made of these precious materials and jewelers and designers to use less and less of the real stuff and more of the gold/silver “embraced™ bronze.” In essence a coating to give the appearance of solid gold or silver.