Precious Metal Prices Affect Jewelry Making

The price of gold has recently risen to as high as $732 an ounce, from about $440 in August 2005. But the World Gold Council, the industry's marketing arm, says the 10% rises passed on to consumers so far are nothing. It expects an additional 15 to 25 percent rise this year when buyers stock up for the Christmas holiday season.

Confronted with escalating costs, some jewelry makers are slimming down their styles or changing the metals they use. Others - after having standard pricing for years - are letting customers know that prices are now subject to change.

And the jewelry makers hardest hit are the small operators - those without the bankroll to hedge their buys or accumulate stocks when precious metal prices first started their latest rise.