The Great Recessions impact on precious metals and consumer spending had epic impact on our business. Many fine firms of long standing were lost. Sadly some of those had even survived the Great Depression.
One other effect the Great Recession had was to push us at the price point. From platinum to palladium or white gold. From gold to silver. From silver to good base metals like copper, brass and bronze. Aggressive sales efforts have promoted certain industrial metals. Titanium. Tungsten. Stainless steels like “316L”. And we have some very confusing alloys out that are a little bit of precious metal and a lot of branding. Unfortunately the consumers distinction between precious and non precious metals has now been blurred.
But now the panic is over. Spending is gently coming back and there are some significant niches showing growth. Custom jewelry might be the most important to us for now. Bridal season is on.
Exotic metals from industry are not precious. They do not have permanent value. They do not have a first association with jewelry at all. Branded alloys that contain a small portion of gold really neither here nor “there”. It is time to market true precious metals again. Let me start by talking up gold.
There is only one yellow pure metal. Gold. The kind of metal you can easily custom produce and not worry about plating or allergies. Why do we often call our very capable jewelers that work on all our metals ‘goldsmith”? Because gold is synonymous with jewelry and wealth almost exclusively. Platinum and palladium are excellent precious metals that must still share their reputation as jewelry metals with industrial use. Plus they never, ever come in yellow.
Right now at a $1470 gold market, it’s essential to remind price conscious buyers that 14kt is really only about $850, and that is a much lower number than you had a few short months ago.
Take these ideas to your sales staff and your customers. Go for the gold.