# Gold nib prices coming down? I don't think so, but I thought I'd ask...



## Parson (Jul 15, 2013)

I was thinking that since gold has dropped so much, the price of 18k nibs should come down dramatically as well, but like gasoline, what skyrockets does not fall back down nearly as quickly.

If I had $5000 or more in 18k nibs (my hard cost) in inventory, purchased when gold was at it's peak price last year, I would not want to cut the prices for each nib to match the competition, if there's any competition for nibs out there to speak of.

Which leads me to my next thought. There's an opportunity here for someone to buy nibs from Bock at current gold prices and sell them for a lot less than anyone else, assuming Bock isn't selling nibs at wholesale prices that reflect their astronomical cost of gold purchased last year!

*All this to ask, do you think gold nib prices will come down anytime soon? *

I'd like to have a few in inventory for my snooty customers, but I ain't paying last year's gold prices if the nib isn't pre-sold!


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## OKLAHOMAN (Jul 15, 2013)

In answer to your question are Gold nib prices coming down. In short the answer is no. At least not Bock prices as all of their prices have increased over the last two years for all nibs, polished steel, gilded steel, titanium, and gold. They know that the spot market will bounce up and down but keep their pricing even with small increases as the market allows as they buy well in advance of the ups and downs of the gold market.


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## mredburn (Jul 15, 2013)

Sticky economics


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## Smitty37 (Jul 16, 2013)

I seriously doubt that very many folks believe that the gold and silve prices will stay down...I have reservations that there is all that much confidence in the US Economy and both China and India are amassing gold right now, commercial use might be down a tad because of lower use in electronic gadgets.





mredburn said:


> Sticky economics


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## Mesu (Jul 24, 2013)

Smitty37 said:


> both China and India are amassing gold right now, commercial use might be down a tad because of lower use in electronic gadgets.



India has traditionally been one of the biggest consumers of gold because people consider it as a secure form of investment. It is not surprising to see even lower income groups having some gold jewellery.

The prices coming down would translate to people purchasing more gold and pushing the prices up again.


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## Smitty37 (Jul 24, 2013)

Mesu said:


> Smitty37 said:
> 
> 
> > both China and India are amassing gold right now, commercial use might be down a tad because of lower use in electronic gadgets.
> ...


Absolutely - but statistics are saying India is amassing more gold now then in the past.  I think for the most part it is being done by private parties (which has long been the case in India) rather than the government.  China, on the other hand is converting USA dollar investments to gold.  Both will tend to keep gold prices up.


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## walshjp17 (Jul 24, 2013)

IMHO, the current price of gold only affects gold nibs yet to be produced.  Existing gold nibs were priced when they were made based on the price of gold at that time.  Selling existing gold nibs at a reduced price to reflect current gold prices would result in a loss.  A smart producer would not sell newly created gold nibs that reflect a lower cost to manufacture until after the existing inventory of higher cost to manufacture product was out the door.


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## Smitty37 (Jul 24, 2013)

walshjp17 said:


> IMHO, the current price of gold only affects gold nibs yet to be produced.  Existing gold nibs were priced when they were made based on the price of gold at that time.  Selling existing gold nibs at a reduced price to reflect current gold prices would result in a loss.  A smart producer would not sell newly created gold nibs that reflect a lower cost to manufacture until after the existing inventory of higher cost to manufacture product was out the door.


  That is somewhat true...and it is also true that when you are selling finished products, you will increase the price of your product (assuming the market will let you) when the price of raw materials rises because the price of your inventory of raw materials will be going up but you won't lower them if the price of raw materials goes down UNTIL you actually start using the lower priced materials in your product.


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