5 Most Important Factors that Impact Gold Prices

1. Changes in exchange rate. A weaker U.S. dollar exchange rate is usually encouraging the increase in world gold prices. This is because investors choose to sell their dollar and then buy the gold with the hope that gold can protect the value of their assets. For example, while the value of dollar exchange rate against other currencies continue to decline, the price of gold continue to rise.

USD Exchange Rate up = Gold Price Down

2. World political situation. Increase of gold price in the end of 2002 and early 2003 occurred as a result of the attack to Iraq by the U.S. command allies. Market participants shifted from money market investment and the stock market to gold investment, causing the demand for gold jumped so sharply.

US participation in any WAR = Gold Price UP

3. Supply and demand. An example of this 'supply and demand of gold' is like the event occured in mid-1980. At that time, forward sales by mining companies are always blamed for the rise of gold price. Although in business term, the mining company's actual behavior is reasonable. By making forward sales when gold rose, they could secure the mine output price at a fairly attractive price. Another example, the case in mid-1998 in which the gold price continued to decline. At that time, Central Banks in Europe Union said that they would reduce their gold reserves regarding the implementation plan of the Euro currency. Because of it, the price of gold has been plunged immediately around 290 dollars per troy ounce.

Bank Gold Reserve Ratio Down = Gold Price Down

4. The global economic situation. Approximately 80 percent of the total supply of gold has been used by jewelry industry. Jewelry consumption is a major influence on the demand side. As economic conditions improved, the need for gold tend to rise. However, the most sensitive industry to be influenced deeply is jewelry industry.

Recession had influenced the jewelry demand in the year 1982-1983, because at the same time, the gold price also rose. In the recession of the early 90, The level of jewelry demand was falling too, but at this time the price of gold also fall down simultaneously.

As described above, economic situation may lead to high inflation. So, the benefit of using the gold as a hedging tool against inflation has been felt by investors for a long time. With gold, investors got a perfect protection against the decline in purchasing power. On the years 1978-1980 the price was booming. While inflation in the U.S. rose from 4 percent to 14 percent, the gold rose three-fold.

High Inflation = Low Purchase power = Gold Up as investor see this safe haven

5. Interest rate. When interest rate rise, peoples tend to keep money on deposit better than gold which does not earn interest (non interest-bearing). This will cause pressure on the price of gold. Conversely, when interest rate fall down, the price of gold will likely rise. In theory, if the short-term interest rate rise, your gold fell. In Indonesia, this theory does not always work. In 1998, as Rupiah fell sharply against the U.S. dollar currency, the government raised interest rate significantly for the hope to put a halt to rising U.S. dollar exchange rate. As a result, despite from rising interest rate, gold price also rose.

High Interest Rate= Gold Price Down

Safe and Effective Ways to Clean or Disinfect Diamond Jewellery

Safe and Effective Ways to Clean Diamond Jewellery

Hand lotions, hair styling products and everyday grime, leave enough of a film on your diamond ring to keep it from looking its best. And if you wait too long between cleanings, these materials accumulate into a thick layer of gunk on the back of your diamond, blocking light and making the diamond appear dull and lifeless.

Diamonds are the hardest substance known, but that doesn't mean we can bring them back to life with any old cleanser. Coatings and other materials used to enhance diamonds can sometimes be removed by harsh chemicals or vigorous scrubbing, so take care when it's time to make your diamond ring sparkle.

Gentle & Effective Ways to Clean Diamond Rings

• Soak your diamond ring in a warm solution of mild liquid detergent and water. Ivory dishwashing liquid is a good choice, but any other mild detergent is fine.

• Use a soft brush if necessary to remove dirt. Soft is the key -- don't use a brush with bristles that are stiff enough to scratch the ring's metal setting.

• Swish the ring around in the solution, and then rinse it thoroughly in warm water. Close the drain first, or put the ring in a strainer to protect it from getting washed away!

• Dry the diamond ring with a lint-free cloth.

If the diamond and setting needs extra help, use dental Water Pick to flush away small bits of grime. You can also use a wooden toothpick to very carefully push dirt away from the diamond and setting.

Cleaning Unfilled Diamonds

Diamonds that have not been fracture filled can be cleaned with a solution of ammonia and water. Use the gentler liquid detergent solution for fracture filled diamonds, because ammonia might eventually either cloud or remove the coating that's been placed on the gemstone. Back to top

Cleaning Rings with Multiple Types of Gemstones

The method you use to clean jewelry should protect its weakest element. If your ring includes other gems, use a cleaning method that is suitable for the less durable stones. Back to top

Protect Diamond Rings from Chlorine

You might already protect your hands from harsh chemicals, but if you don't, think about how chemicals such as chlorine can affect your fine jewelry. Remove your rings or wear gloves to keep chlorine away from your rings.

Diamond Care

Regularly inspect your diamond jewelry to spot a loose stone or bent prong before it's "too late." It's a good idea to have your diamond jewellery examined and cleaned at least once a year by a professional jeweller.

Everyday exposure to creams, skin oils, hairspray, household chemicals and other substances can cause buildup that will dull your diamond's brilliance and sparkle.

Diamonds are the hardest substance known, but coatings and other materials used to enhance them can sometimes be removed by harsh cleansers and vigorous scrubbing, making it even more important to clean the gems with care.

• Soak your diamond ring in a warm solution of mild liquid detergent and water.

• Use a soft brush if necessary to remove dirt. Soft is the word—don't use a brush with bristles that are stiff enough to scratch the ring's metal setting.

• Swish the ring around in the solution, then rinse it thoroughly in warm water. Block the drain or put the ring in a strainer to keep it from slipping away!

• Dry the ring with a lint-free cloth.

• If the ring needs extra help, you may use a wooden toothpick to carefully push dirt away from the stone and setting.

• Fragile settings and estate jewelry won't take kindly to being scrubbed with a toothbrush, so use a soft touch. Then, just rinse the diamond with water and wipe with a soft, lint-free cloth.

• If your jewellery has other gemstones, use a cleaning method that takes care of the less durable stones.
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PLEASE DO NOT

• Put your diamonds away with other jewellery pieces; they could scratch one another. Use a fabric lined case with a pouch for each piece, or wrap them in tissue paper

• Bring your diamonds in contact with household chemicals

• Expose your diamond ring to products containing chlorine. Wear gloves if you need to use such products

• Expose diamonds to dripping bleaches or hair dyes

• Don't use harmful solutions. Chlorine or abrasives should never be used when cleaning diamonds, especially those set in jewelry. These erode some of the metals often used in diamond settings, and may loosen prongs, or even dissolve the metal completely.

CLEANING PRECIOUS METALS

Caring for your gold jewelry

• To maintain your gold jewelry’s sparkle, clean it regularly.

• Soak your gold or platinum jewelry in warm water mixed with a few drops of ammonia.

• Use a soft-bristled toothbrush gently for more extensive cleaning.

• After cleaning and rinsing, dry and polish with a soft cloth.

• Close your drain if you are cleaning near a sink.

• Store it in a fabric-lined case with separate pouches for each piece

• compartments, or wrap pieces individually in soft tissue paper.

Caring for White Gold Jewelry

When white gold is sold, it is always rhodium plated. Rhodium is a hard, durable, silvery-white metal that gives white gold (which is actually a very pale yellow) a very white look in the showcase and on your finger. This white look will soon wear out when there is friction. This usually starts by the shank (the part of the ring that goes around the finger) starting to “turn yellow”. Later, all the exposed edges and corners will start “yellowing” as well.

The easiest and least expensive solution is to take it to your local jeweller to have the ring re-rhodiumed. The cost of this temporary solution is minimal, and it needs to be repeated as this new layer wears off. A more permanent solution would be to consider remounting your stones in a platinum or palladium alloy ring.

While lasting and durable, gold can become scratched or dented, particularly if handled roughly. Regularly check your gold jewelry for loose prongs or any damage, promptly bringing it to a professional jeweler for repair if needed.