Some jewelry store owners have gone as far as to purchase an abandoned gold mine to help cope with the rising cost of jewelry. Since November of 2004 when gold was made easily tradable on the stock exchange, the price of gold has been steadily rising and no one knows when the price will plateau. Gold hit a record high on December 7th 2010 when it was $1,431.25 an ounce. This rise has put the cost of gold jewelry outside the reach of the average consumer. Many consumers have switched to purchasing sterling silver now. A few years ago a similar phenomena was seen with Platinum metal. The price of platinum had increased to a point that consumers switched from platinum to white gold.
“Gold is the only thing screwing up this business,” says Doddridge, who expects his total 2010 sales to be up about 7 percent and sales of gold items to be down about 25 percent”