Financial Crisis USA; 0.2 Gold Price Collapses

Date: Oct 22, 2008

More and more interesting things starting to happen as we see US economy stumbling. Latest of all from businessweek is the plunged Gold price per ounce.

In this post I am going to relate the effect of market condition to my close venture, FAARO Jewelry.

The news was Gold price went down to $735/oz 13 month low (Businessweek.)Caused by stronger dollar created with high demand for dollar and the fear of global recession. As global recession fears have create huge fear in investors mind to cause another big loss for DOW Jones Index average.

Lets talk about the effect of this to our venture, FAARO Jewelry. Direct effect we experienced at FAARO inc. is where we use gold at first, which is FAARO manufacturing facility in Sri Lanka. Although this facility is located in Sri Lanka changes in Gold price at NY stock exchange are very well reflected in SL gold market. But FAARO buy gold at whole sale price from trusted suppliers, who would take several days to reflect this change in gold prices in their actual gold wholesale price. If we assume the wholeseller also reduce the Gold price to reflect the drop to $735/oz., at FAARO facility we can purchase Gold at lower cost with these conditions. With FAARO's FIFO inventory valuation method these changes will be very well reflect in Cost of Goods sold.

From managerial standpoint of FAARO, the drop in Gold cost will give us as option to cut back on our production cost of Jewelry (Gold jewelry, in particular.) With metal cost representing 43% of the cost of goods sold, this drop will make a big difference.

Overall, change in gold prices are not only helping FAARO jewelry buy gold at lower cost but it also create an opportunity for FAARO with the option of reducing production costs and cutting back on prices to better suit for slow economy.

I would really like to hear your comments about the today's topic; Gold and its implication to FAARO Jewelry. Please dont forget to leave your thoughts.

Sapphire : FAARO Jewelry

FAARO sapphires
FAARO is a brand of jewelry which specializes in sapphire jewelry. Our sapphires come in a multitude of colors including white, pink, green, yellow, and blue. All our beautiful stones come from well-known gem producing countries such as Thailand and Cambodia as well as Sri Lanka, where most of our blue sapphires are formed.

The history of our main Sapphire producer, Sri Lanka
Sri Lanka has been known by many different names throughout time because of its abundance of gems and the shape of the wonderful island is a gem. Marco Polo once stated in 1292, “I want you to understand that the island of Ceylon is, for its size, the finest island in the world and from its streams comes sapphires…”. “Serendib” is another name given by Persian traders, who came to this country to trade gems. “Ranthna deepa” meaning land of gems, is well known for producing the world’s richest and biggest sapphires for thousand years. The blue sapphires found in Sri Lanka are known as “Ceylon sapphires”. Not to forget the “Star of India”, a 563.35 carat sapphire mined in Sri Lanka, is the world’s largest star sapphire exhibited in New York National Museum at the moment.


Sapphires
Sapphires comes in different colors such as violet, dark gray, orange, yellow, pink, green and black which are also known as “fancy sapphires.” These “fancy sapphires” are less expensive than other sapphires but are equally as beautiful. Blue sapphires, found primarily in Sri Lanka and other gem producing countries, have a unique velvety luster which makes them very expensive. Most of the sapphires found in Sri Lanka are of a lighter shade of blue and are usually more than 100 carats. White sapphires, which are colorless stones, are also found primarily in Sri Lanka. These fine white sapphires are extremely rare as a result of their unique hues or shades of pink, purple or blue.

Rareness of sapphires
As a result of sapphires unique colors and shades, they tend to be very expensive and hard to find. Most of the time these stone’s prices increase several times by the time they arrive in North America and Europe. Diamonds today are used in almost all of the jewelry sold, especially in the United States. This production and usage of diamonds prove that diamonds are not rare. Diamonds are so expensive mainly because of inflated profit margins. Unlike diamonds, sapphires come in different shades and colors which make them extremely rare and unique.

Natural Crystal Sapphires
These hexagonal crystal structured sapphires, scientifically called “corundum,” are designed by FAARO for elegance and beauty with a unique taste of nature. Our natural crystal sapphires come from Sri Lanka. These sapphires are in their original form, but cut and polished to a unique shape. Each crystal is unique for their shape and shades of colors, just like sapphires. These natural crystals carry a myth, that they possess various healing powers of the earth making them very popular among the natives of Sri Lanka.

What to look for when you buy jewelry

Most of the times when people buy jewelry, they are not concerned about some of the important fact. Thus several months later, they may not be able to wear that jewelry again or for some other reason it will become useless. In this article you will learn several key points and components of jewelry to keep in mind when you deciding what jewelry to buy for, either through an online web sites or from a store down town.

What occasions are you going to wear this jewelry for? Selecting the right jewelry for right occasions is very important. It could be for a date or a party or simply to wear everyday to work or at home. The event is a significant fact to keep in mind. A beautiful jewelry set would look much better on an expensive dress than cheap jewelry. This connect to the next point, do you plan to wear it during day time or in the evening? Glittering jewelry such as Pink heart pendant by FAARO jewelry ( ) is an ideal piece to wear at night, either with a colorful dress or a black dress which would enhanced the beauty of the jewelry. The sterling silver in this pendant along with the colorful gemstones would make you look beautiful with them at night.


Another important point to keep in mind is the length of the necklace. How long do you want your necklace to be? “Choker” is a 14 inch chain which “Matinee” is 23 inch long chain that hangs down further. More detailed information about chain selection can be found in FAAROzine informative newsletter series. (To receive these newsletter go to www.faaro.com)

Another points is how frequent will you wear this? Frequency of the use is important based on several featured of the jewelry you are planning to buy. Thickness of the chain is important if you are going to wear it daily. That means the chain should not be fragile as to bare the pressure and other forces that might apply on it.

Clasp is also another important component of the jewelry to look for before you buy. A clasp that is easy to put on and take off will make your life easy when having to wear jewelry.

Important components like these can help you better understand the jewelry that you will wear and to select the jewelry that will best fit your daily needs and to make you look beautiful. To receive more important information like these through FAAROzine please visit faaro.com.

Jewelry of the Week: 2

This is an elegant 14k White Gold Metal with an astonishing Red Ruby and 6 Pink Sapphire stones. All gems are genuine, if you have followed this blog you know the quality of Gem stones at FAARO.

This gem stone goes well for a dinner party on your black dress or a white dress to bring out the beauty and elegance in you and make you show up with classic Piece of Jewelry.
Please visit the below link and check out more information about this Item.

More information: Click Here

FAARO Jewelry of the week

Tripple heart Pendant with Genuine Sri Lankan White Sapphire and Garnet.
More information of this piece of jewelry can be found at;
http://store.faaro.com/servlet/Detail?no=47

Manufacturing a product from scratch; FAARO manufacturing facility

Setting up a manufacturing plant or a facility to build a product can be tedious at times. More complex the manufacturing process, more expensive the cost of equity required to start up.

FAARO manufacturing facility located in Sri Lanka is still in its improving stages as we keep adding new machines and processes to improve product manufacturing efficiency. Jewelry manufacturing require variety of equipments to build small jewelry to precise dimensions and to grand quality as we always do in FAARO manufacturing plant.

Quality of our jewelry is the key factor that we pay most of the attention to in the manufacturing process. We also stress on the consistency of our jewelry designs.

Workers at FAARO jewelry are well trained to make jewelry to meet international high standards and quality. Jewelry designing and manufacturing is also helped by our design school in Florence Italy. The training we received from this jewelry school has helped us greatly to also use our skills and design attractive jewelry to be made at FAARO manufacturing facility.

After all jewelry made at FAARO manufacturing facility are made by highly skillful workers and they possess best quality, that of a Sapphire gem stone jewelry.