With the price of gold nearing 2,000 USD, the question has to be asked. Is gold the perfect investment, or is it simply, as billionaire investor George Soros has phrased it, the "ultimate asset bubble". Truth is we won't know until after the fact, but in the meanwhile it's interesting to consider the economics of it relative to it's use in design and it's stylistic prevalence in culture, as discussed in a great article by Charles Sizemore here. As Sizemore points out, gold has two fundamental functions. The first being it's use as a commodity. In jewelry, fashion, and more or less, all things design. But gold also has a second role in investing, as a hedge. Bought to protect investors against market volatility and currently to an even greater degree, competitive currency devaluation. As you'll see in the second image below, it's an interesting relationship which can be inverse. Implying that at gold's peak in style, it is at a lull in terms of being an investment vehicle. As was the case in the year 2000. Though while more relevant to today, it's equal demand in both fashion and in terms of investment may actually be signaling it's top as an investment, and it's return into style. And into all of our lives in the things we care about most on this blog. Being naturally, table settings, interiors, Chanel, picture frames, and of course, shoes. So if the bubble bursts, be sure that you'll be seeing a lot of golden this and golden that all over the place until we're all completely sick of looking at it, and it drifts out of style again. About ten years from now.
Thomas-Michael
Style And Economics, The Gold Bubble? This is the key chart for this discussion. You can see how much gold was being used in fashion in the year 2000. Obviously it's predominate use is in jewelry, but I think it's safe to assume that it's use bleeds into everything else design and style concurrently. Now while in 2010, the relationship is dramatically shifted and evened out relative to being an investment vehicle. Thus perhaps signalling a top as an investment and a return into style. I suppose you could conversely consider the ultimate alternative where the trend continues and gold completely has no demand in style whatsoever, but cycles are more likely as we all know from fashion.
Style And Economics, The Gold Bubble? Now for some examples. This one I LOVE. Gold is really quite chic when used with white. This is a great wedding table setting you can find at the link above. Great pictures there. The gold bottles are fantastic.
Style And Economics, The Gold Bubble? Here's a recent gorgeous golden boudoir interior by Nate Berkus. Less chic, more regal and dream like. Really like it.
Style And Economics, The Gold Bubble? And some gold starting to pop up in fashion. This is the Pre-Fall 2011 ad campaign by Chanel. Admittedly there's not a lot of gold inspiration and fashion floating around out there, but it's just the onset of a broader decade long trend if the relationship is correct.
Style And Economics, The Gold Bubble? I always love an old antique gold frame.
