Evening star., 1933-11-06
DEMAND SPURRED
FOR GOLD JEWELRy
Retail inventories Increase in
Observation-Disclosures
Face Problems.
Special Dispatch to The Star.

NEW YORK, November 6.-The Gov
ernment's purchases of gold have quick
ened the demand for many types of
gold jewelry. increased offerings of scrap
yellow metal, added to the value of re-
tail Jewelry inventories, and enlarged
the problems of manufacturers, who
now find they need larger working
funds which banks are not disposed to
advance.
Broader buying of gold jewelry on the
part OF the public Is a perfectly natural
reaction, the trade explains, pointing
to the decline in silver sales when the
white metal fell so low last year that
even theftS Of silyerware were greatly
reduced.
The ransacking of crannies for all
sorts of old gold likewise continues, with
fully f1ve times as many retail jewelry
stores here now displaying signs. I'VE
Buy Old Gold" as was the case less
than six months ago. Retail jewelers.
declare that old gold buying brings
them profit; brings people into the
store who often become customers; re-
moves a lot of out-of-d date jewelry from
the market, and improves business gen.
orally by putting money into circulation.
Old Trinkets Offered.
Owners of old gold trinkets no longer
take them to assay offices, where the
official price remains $20.67 an ounce,
as established when this country went
on the gold standard back in 1873.
Such secondary gold now is being
offered to reputable jewelers., who are
marking up their buying price each day
after the Reconstruction Finance Cor
poration announces its quotation.
Jewelry manufacturers, beset by the
depression and higher costs under the
N. r. A., now find one of their chief
raw materials, gold, up more than go
per cent. Old timers simply cannot
understand that they have to pay more
for gold, which they always had been
in the habit of buying through the
Treasury at the fixed price of S20.67 an
ounce.
Between April 10 and August 28
some manufacturing jewellers expert
enced some difficulty in obtaining gold,
but this situation changed when Presi-
dent Roosevelt lifted the gold embargo
to the extent of permitting export and
sale of newly mined gold through Gov
ernment channels Conditions were
bettered on September 8, when the
Treasury started its gold buying policy,
setting the first price at $2962 an ounce.
and further improved October % wher
the gold purchase operations were trans
ferred to the Reconstruction Finance
Corporation, whose gold buying started
at $31.3 an ounce.
The daily revision of gold quotations,
however, has brought no rush from
manufacturers either for secondary gold.
that is scrap and remelt obtanable
through refiners and bullion brokers,
or any attempts to buy newly mined
metal from the Government.
Platinum Affected.
Jewelry prices naturally will have to
be advanced from 20 to so per cent,
depending on the amount OF gold and
other precious metals they contain
The first reaction to higher gold prices
was to substitute platinum. The result
was that platinum prices rose from
S24 an ounce to around S38.
Wedding rings and similar better
grade pieces of jewelry naturally will
feel the widest advance, since they have
greater gold content and require more
skilled workmanship. Makers Of me-
dunn and low priced jewelry on the
average use only 10 per cent gold, 10
per cent gold filled and rolled gold
plate, IL per cent silver, ID per cent
MISCELLANEOUS Hlcthlo anu dbOut ~ PSA
cent base metals in total production.
Many retailers now are stressing the
difference in gold content in their
wares. They assert that items labeled
gold" or solid gold" contain as much
of the metal as will permit 1t to be
worked, while gold filed" ranks next
to "solid gold" and rolled gold plate"
follows.
Retail jewelers., perhaps with an eye
to stimulating trade, show no DISPOSE
tion to mark up prices violently. They
are trying to care for replacement values
But they are not inclined to push goods
at any price. because their inventory
values are rising, which in turn makes
banks less inclined to press for pay
ments of loans collateraled with jewelry.
Banks, however, show no eagerneSs to
advance money for new stocks.
Principal Centers Busy.
Manufaeturing .jewelry towns. such
as Attleboro and Worth Attleboro, Mass,
and Providence, r. l., are busy and