Know Everything About Gold losing ground in slow economy
Added: June 16, 2009
Circle pendant ring and necklace in 18-karat yellow gold with
diamonds by Yasuko Azuma for Gold Expressions have been popular
around the world and is been bought by high society people.
A full 60
percent of those participating in National Jeweler's Product Panel
reported that gold jewelry accounted for 20 percent or less of their
overall sales, and for many, the category isn't growing.
jewelry sales do not account for the bulk of most retail jewelers'
annual sales, and, in a sluggish economy in which significantly
higher gold prices have climbed even further in recent months, this
is probably a good thing.
percent of panelists reported that gold jewelry sales have stayed
level over the past three years, and 36 percent reported that they
are decreasing. Only 11 percent of panelists reported an increase.
still in the gold game, it is the price of the metal that rules the
day, as more consumers turn gold into cash rather than buy it, opt
for less-expensive pieces or bypass gold altogether.
about changes in the gold jewelry market in the last five to 10
years, many panelists--not surprisingly--noted that the higher prices
have customers running scared.
is so much more expensive," wrote one panelist. "Customers
get sticker shock. A simple 22-karat gold bracelet is around $1,000,
and our customers always buy pairs. For most people, it's too much to spend."
A number of
panelists reported that customers who are buying gold are going for
lighter-weight, and therefore less expensive, pieces.
with gold prices being what they are, [sales of] larger gold pieces
have slowed down," one panelist wrote.
When asked how
the recent fluctuations in the price of gold have altered their
businesses, panelists offered a myriad of responses.
The two that
seemed most common, however, were to reduce the company's open-to-buy
or, simply, to do nothing and let the gold chips fall where they may.
much more cautious in buying, do not inventory as much as I used to
and am relying on special orders for customers," one panelist said.
"I have not changed how I sell. Those that can buy still [do]
buy. We are holding on."
To see the
complete results of National Jeweler's Product Panel survey on gold
jewelry, download Karat gold crawl.