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The State of the Jewelry Industry

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Welcome to my first blog.

I have dreamed of opening a business like this for many years. After working for one of the largest family owned jewelers in the state, I realized that not every customer was getting the personal touch that they deserved. Especially when they are purchasing a unique piece of jewelry, selling a family heirloom, getting a special item repaired or needing an appraisal for their insurance. The average customer is not connecting with these stores anymore.

What I hope to do with this business is to have an individual meeting with each client to establish their needs. Whether it is an appraisal that is needed, they want to sell their jewelry, they need a repair or they wait to purchase a unique piece of jewelry.

You will never be rushed and I assure you that you will leave my office happy.

So, what has changed in this business in the 40 plus years that I have been involved in it? A lot!

I was working in a small store in New Haven in the mid to late 70’s as a teenager when the metals prices went crazy. The US had dropped the gold standard in 1971(back then, the value of money a country had was tied to the amount of gold they possessed) and by 1973, gold was at $42 per ounce. By 1980, gold climbed to a record $850 per ounce due to a number of different occurrences. The Iran hostage crisis, the Russians invaded Afghanistan and the Feds raised the funds rate from 13% to 20%. It was also the time that the Hunt brothers tried to corner the silver market and silver rose from $6 per ounce to $49.50 per ounce.  It was a difficult time to be a jeweler back then.

In the 80’s inflation was climbing and people were looking for investments. A slew of unscrupulous businesses opened and began selling “investment” diamonds out of hotels. Many people got stuck with these overpriced diamonds and because so many were being sold, it caused the diamond market to climb. A number of new gem laboratories opened and many of them were providing reports that looked very professional, but were not worth the paper they were written on. By the 90’s, diamonds were coming back down to reality, but those who paid the high prices in the 80’s were not thrilled to see their diamonds dropping in value. Unfortunately, we have no control over the market.

The biggest change we saw was in the early 2000’s when online jewelry shopping became popular. This forced the traditional brick and mortar stores to change their way of doing business or go under.   Jewelers were forced to change their mark ups and were having trouble making ends meet. Unfortunately, many could not compete with the low prices the internet stores were giving and we have seen a drastic decline in independent jewelry stores across the country.

Here in Connecticut, 10 jewelry independent stores have closed up in 2019 alone. It is a sad ending to what was once a thriving business. But we must adapt!

This type of personal jewelry business is the future.  We cater to those who want to buy or sell that special item or need quality service.  I will give you the attention you deserve. The attention you won’t get from the internet or the large chain stores. I will make sure you understand what I am doing and provide you with the honest truth that is lacking in many businesses today.

I invite you to check back here weekly to view my blog to learn more about my business.