How is the jewelry economy?

Someone else on this thread talked about how you are doing is
impacted a lot by where you are. I think that’s quite accurate, but
also it depends a lot on who you are and what you are trying to
sell. I think those who are low end (under $100) are going to be
impacted the most in this economy as the people who might have bought
something in this range are going to need the extra money they might
have had for it on food and gas. I don’t think they are going to
pick up customers from the slightly higher ends (who might be feeling
like their wallets are a little emptier too) as they have had a taste
of better merchandise at higher prices and it’s going to be harder
for them to step down than to just not buy anything for awhile. Those
people who cater to the lower middle class are also going to have a
harder time. Upper middle and upper class will keep spending. The
rising cost of food and gas just doesn’t do the same percentage of
damage it does to poorer folks. There will be exceptions to all
these rules as some people will always stand out enough to draw in
the business.

Location is also important. The Northeast didn’t go through the huge
building boom that went on in a lot of the rest of the country, so
even though the housing market is down, it isn’t having the same
impact. People located in somewhat recession proof areas (Silicon
Valley, New York City, even a bit of Boston where I am, and extremely
high end smaller towns) will continue to prosper, or at least not
lose much ground. There is also the issue that those who simply do
what they do better than most will continue to thrive and those who
don’t will go out of business, thereby increasing it for the people
who do better. Personally, I’m continuing to see modest growth over
the last year and I always have a pile of work. But then I deal with
mostly upper middle class people who really aren’t impacted that
much. Oh and I’m better at what I do then anyone else in the area
(humbler too).

Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC
1780 Massachusetts Ave.
Cambrige, MA 02140

Daniel Spirer is absolutely correct in his assessment of the jewelry
economy. I recently participated in a show where those selling items
at the low end–under $l00 did very poorly, whereas those selling
more expensive items well over $l000 did very well. Upper and middle
income people are not feeling the economic pinch, whereas those
making low incomes are really suffering.

As Daniel points out, a lot has to do with location. Those of us in
the Pacific Northwest are only recently beginning to really feel the
slowdown in the economy, with more and more homes going into
foreclosure. According to our local newspaper, we have hit a record
number of stores going out of business, galleries closing, and people
filing for bankruptcy. Four of the five galleries which used to show
my work are now closed. Another has raised its commission to 60% in
order to meet its costs.

A good friend has decided to switch from working with silver, to
working with gold in hopes of reaching more affluent buyers. I hope
she is making a wise decision, as she will be purchasing gold when
it is at its peak–. Hindsight is wonderful. Had any of us known, we
would have stocked up when gold was under $300. Too late for many of
us now.

Alma