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Evolution of gold price (1990 -2010, dollar per ounce) 1,200

1,000

800

600

400

Sep 13 15:04:00 BST

1990

1992

1994

1996

-5.80 -2.01% 1998 2000

2002

2004

2006

2008

Source : FinancialTimes.

«scrap») as prices have been rising (see Graph enclosed). In-

wood with golden carvings was all the rage

vestors are in fact driving the trend. The logic behind the

in the XIXth century in the UK. Before that, Ver-

choice of gold investing may not be for its intrinsic properties,

sailles Castle used abundantly gold as a proof

but rather for other reasons (such as protection against infla-

of the «Solar King» Louis XIV ’s power and for-

tion or speculation). This of course has multiple consequences.

tune, as well as gigantic glass windows and precious woods.

Gold without thinking of it Investing in gold might appear as something safe and attrac-

Gold was also used to redefine the use of light

tive. However, as soon as gold is not valued for its intrinsic pro-

in a time when it was scarcely available. Can-

perties, additional risks appear. For example, unlike other com-

dlelight reflections with golden leaves were

modities such as oil, gold is not consumed: its use is mainly

taking over the room illumination whenever

to store value, to be used in the industry or jewelry. This means

the sun was setting. Today LED light, which

that the marginal price does not reflect an equilibrium of sup-

tends to be cold, can be combined with gol-

ply and demand, but merely speculative perspectives.

den leaves reflections in a living room. The

Buying gold today should merely be driven by other purposes,

ness and warmth in room designs.

combination of the two can deliver brightwhich defy the laws of prices and returns. More than investing and storing value, gold can serve the purpose of enhancing

More than the price and the display of the

day to day life through its visual and plastic qualities. Combined

metal, what makes the inherent quality of

with other metals and stones, it can actually get a higher value

gold is probably its sensuality. Wedding rings

as a piece of art or the result of craftsmanship. More than the

are still essentially made of it, as well as or-

metal, it is the final result of its use which should drive the moti-

namental jewelry. Its popularity is due to the

vation of the buyer.

fact that soon enough it becomes (and stays) warm at the contact of human beings. In times

New uses for gold

of minimalist and cold designs, gold brings

If motorbike aficionados are regularly using this precious metal

back the charm of a familiar and old glowing

to replace chrome, it is actually in interior design that it can shine.

presence. This is in essence the real power of

Furniture has historically been associated with fine gold en-

the precious metal, and the true sense of the lu-

hancements, to highlight carvings and play on contrasts. Ebony

xury that it can bring to our day-to-day lives.

Economy

35 39

Luxury Life MAGAZINE  

Autumn Edition 2010

Luxury Life MAGAZINE  

Autumn Edition 2010