Gold at nearly a thousand US dollars an ounce. Platinum over two thousand. Silver, incredibly enough, at twenty dollars an ounce.
Did we honestly think we would see these prices this early on?
The falling value of the dollar coupled with instability in the markets has set this industry on its ear. Then we add low mine production to the mixture, and suddenly a reachable commodity becomes just one more thing that’s harder for the common man to acquire. We’ve had a spike like this before, but not with such a steady upward trend. Is it going to stay this way? Who knows. I, for one, think it will.
Rather than bemoan the price- which I can do nothing about- I want to address the situation and how it affects us, the manufacturer/retailer.
We’ve had to revise our repair and custom work price lists twice in the past six months. Our catalog items are all marked for $600 gold, so when ordering for a customer, we’ve had to add 55% to the price for realistic prices. They don’t always take too kindly to being told $155 when the glossy printed page says $100. Some people have walked, most have not. Most people seem to be understanding of our dilemma, of the reality of it all.
We are buying metal off the street every day now. People are getting hard up, this has been an unusually cold winter, and they are cleaning out their jewelry boxes for bill money.
We’re also seeing more custom work than ever before. I think when belts tighten a bit, people tend to look to what they have on hand and utilize that. Grandma’s diamonds are being set and reset into engagement rings, necklaces, even a belly button rings or two. Rather than buy at higher prices, people seem to be willing to pay for labor. We don’t mind, we make the same cut either way, and custom is fun.
In our own designs, as well as the bigger designers, look for fashions that incorporate alternatives to precious metals. Anything to take up dimension and save on gold: wood inlay, larger stones in thinner bezels, enameling, bead strands on pendants instead of chains, silk, leather, cord, rubber… we’ve already seen the bigger push for titanium, carbide, stainless steel. Many people want a wedding band in the $100 price range. No gold band is going to be that price again. Silver doesn’t hold up to constant wear, so we move to metals that should be housing a space ship instead of commemorating vows.
Honestly, I’m a little bit excited about this. For years, gold was cheap. Not dinnerware cheap, but cheap enough that the average person could afford a few gold chains or one nice heavy bracelet. Heavy, clunky styles came about from this, and they looked great at the time, but are now passe. I have lost count of how many herringbone chains I’ve taken in on trade or buy in the past few months, but I am happy to see the little creeps go by the wayside. Ever tried fixing one of those? Now I have to bend my mind towards the creative to keep the price down for you, the consumer, as well as myself, the businessperson.
Platinum sales, always slow, have completely dried up, at least for our small-town store. We have never been a fan of it, with its dulling patina and difficult metalworking properties. Silver is selling better than ever, as both white metals continue to be popular and people discover the affordability of sterling options. We are learning to combine sterling with gold accents, using lighter weight chains, and using multiple stones in one setting.
In summation, I would have to say that it hasn’t hit us too hard, not yet. Our design and service has always carried us, and always will. The people able to use and reuse gold are going to be able to keep their heads above water. The stores with excellent customer service, unique niche items, and a great diversity of product will pull ahead of the cutthroat deep discount boys in this race. And that puts Wexford Jewelers on top.
