Sunday, November 7, 2010

Jewels, foreclosure deals not so sterling, thanks to recession

Jewels, foreclosure deals not so sterling, thanks to recession: "One I’ve noticed picking up momentum: jewelry that looks like the real thing, but isn’t. Expect to see more very real-looking gold-plated jewelry and previously snubbed 10-karat gold while holiday shopping this year.

Kenneth M. Gassman Jr., a retail jewelry analyst in Glen Allen, Va., explains that the recession has prompted jewelers — many of whom would never carry 10-karat gold jewelry — to sell it.

Diamonds in engagement rings prior to the recession often were around 1.25 carats. Today, they’re not even 1 carat.

So if you’re shopping for jewelry, you may not be getting quite as much for your money as you’d hope.

“Two things are going on now,” Gassman says. “Jewelers are trying to get retail price points that are attractive to consumers. And in general, consumers are moving toward buying jewelry with a fashion look. They want something fashionable, and they seem to be less interested in the commodity composition.”

The industry dubs this, “Flash for cash.”"

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