Gold has hit new lows.
But for Joe Consumer, it’ll be mostly shrugs.
We spoke with several jewellers to talk about what impact — if any — plummeting prices would have for their wares, and their subsequent attractiveness for consumers.
They told us few people will notice any difference at jewelry stores for three reasons.
First, if you’re buying a piece of jewelry for a specific occasion, a price cut is unlikely to even figure in to your purchasing decision.
“You’re going to save $50 on a $4,000 piece of jewelry,” Ken Walter, the owner of retailer Diamalux on Long Island, told us. “You’re not going to see that much of a difference.”
Another jeweler based in New York City who asked not to be identified said the final retail price for something like a gold-studded ring is most determined by the cost of craftsmanship and service than the underlying commodity.
Finally, the entire jewelry industry itself remains in secular decline, according to David Hopkinson, a gold manufacturer out of New Jersey.
“Now a days jewellery doesn’t have the place in the world it did 25 years ago,” he said. “Electronics seem to be the hot item, everyone wants to have smartphones, $300 or $400 cell phone plans. And gas is up, so all money you want to have going to jewellery is not going there anymore.”
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