On the backdrop of rising prices for gold, jewelers in Europe often offer jewelry made of 9-carat gold, which is less pure compared with 18-carat gold, but much cheaper.
Over the last decade, gold prices have increased four-fold, and for middle-class Europeans purchasing gold jewelry is becoming less affordable in the financial and economic crisis environment.
It is safe to say that jewelers using 9-carat gold, which is becoming increasingly popular, have made a sort of revolution on a small scale. Despite the fact that gold content in this category is only 37.5%, while 19-carat alloy contains 75% of pure gold, this move gives a distinct advantage in a situation of rising prices for the yellow metal making jewelers able to manufacture twice as much jewelry goods having the same amount of gold.
In Belgium, demand for jewelry pieces made of 9-carat gold is invariably on the rise, though their market share is still unknown. "The trend is too new, and so far we have no data," says Lavenir.net, a Belgian online resource citing Marie-Christine Heeren, Secretary General of the Supreme Council for Jewelry and Watches, which brings together Belgian jewelers, manufacturers and importers.
Here is how the demand for 9-carat gold jewelry is explained by Cédric Remy, a third-generation jeweler from the Belgian town of Beauraing. He has been selling jewelry made of inexpensive gold for the past 15 years, and his sales tripled in the last two years. "Many people come with a certain amount of money. They can spend two hundred euros to buy a piece of jewelry which in appearance is not worse than a product made of 18-carat gold, though it is inferior in quality. By contrast, those who want to buy something really worthwhile, which will not lose its shape in time, will get an 18-carat gold item, and in this case the price is not the main thing," the jeweler said.
Meanwhile, the price difference speaks for itself. If a chain of 18-carat gold is sold at an average price of 400 euros, similar 9-carat gold goods will cost 150-200 euros. It is no wonder that in France the share of inexpensive gold jewelry sales has tripled.
Although 9-carat gold is cheaper, it certainly has its flaws. "It is not quite identical to the traditional gold in color. It is short-lived. Nine-carat gold pieces break easily and do not have the same residual value," says Guy Subra, president of the French Federation of Watchmakers and Jewelers. However, he said that consumers today are often interested in less expensive products.
Gold is generally regarded by investors as a more reliable alternative to volatile currencies and corporate equities subject to severe fluctuations. This precious metal has been rising in price for already 12 consecutive years. However, in 2012 its growth was minimal over the past four years - 7%. Last February, gold went down in price by 0.8%.
Alex Shishlo, Editor in Chief of the European Bureau, Rough&Polished
