|Jewelry Industry Hopes Marketing Campaign is Golden|
|Key Words||Gold, central banks, manufacturers, consumers, incomes, budget, prices|
Currently, gold trades at approximately $260 an ounce, a historically low figure. The primary reason is that over the past two years central banks have been selling gold.
The World Gold Council, which represents jewelry manufacturers, wants to reverse the trend. It is launching a $20 million marketing campaign designed to "re-brand gold" - to persuade consumers that gold, not diamonds, are a girl's best friend. It wants consumers to perceive gold as a fashionable metal from which to make jewelry; over recent years, gold has lost its air of exclusivity, particularly among those with higher incomes. The Council is also hoping that consumers will want to buy more 18- and 24-carat gold, rather than 9-carat gold.
Members of the Council will have to increase their dues from $1 per minted ounce to $2 in order to pay for the campaign. This will increase the Council's budget to $55 million. However, store prices are not expected to be affected significantly as a result.
(Updated March 1, 2001)
|Source||Katherine Griffiths, "Gold industry in $20 million campaign to restore precious metal's lost sparkle," The Independent, February 12, 2001.|
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