RAPAPORT... The 4Cs are not the only things that make a piece of diamond jewelry a sales winner. In an ongoing series, RDR explores the “3Ws” — what’s selling, what’s not and why — by going straight to the people who really know — jewelry retailers. Each month, we ask a sampling of retailers to comment on the important issues that are facing the industry today. Here is what they had to say when asked: In light of the high prices of gold and platinum, are you turning to alternative metals such as palladium, titanium, stainless steel, or using more sterling silver?
KEVIN SEELE, PRESIDENT, KEVIN’S FINE JEWELRY, TOTOWA, NEW JERSEY :“Actually, we’ve started to focus more on lines that are a combination of silver and gold — sterling silver with some 18-karat gold accents — higher-end stuff that ranges from maybe $300 to $2,500. We’re doing very well with a company called Bixby that is really hot right now. We are selling a lot of tungsten carbide in men’s jewelry. It’s nice and much more affordable; it’s heavy. You try to buy a gold bracelet that’s nice and heavy for a guy nowadays and you’re spending three or four thousand dollars; it’s just not happening too often. Palladium is an option, but people are a little bit skittish about it because they’ve never heard of it before. I know in my heart it’s an awesome metal because it’s pure white and it’s affordable.”
BETSY SUHEY, OWNER, AURUM JEWELERS AND GOLDSMITHS STATE COLLEGE, PENNSYLVANIA :“We’re more a gallery and we look for things that are a little unusual. We’ve been carrying tungsten, titanium, stainless steel for the past five or six years. We have some stainless steel Damascus wedding bands, which I love, made by Namu Cho, and we also stock George Sawyer mokume gane rings that are layers of metal that form looks like wood grain. When people get down to their wedding bands and engagement rings, they’re looking at it as a lifetime investment. So they’re looking for what they want and what fits their personality, rather than finding the cheapest possible thing. They want something durable, to last a lifetime. Alternative metals are not necessarily cheaper. I want to make sure it’s the right fit for my customer’s lifestyle.”
DAVID WEST NYTCH, PRESIDENT, WEST & CO., WEBSTER, NEW YORK :
“We do tons of palladium. For almost two and half years, we’ve been selling palladium heavily. Because we design and manufacture here, we move the metal quickly. We also do very well with tungsten and stainless steel and gold. For palladium in bridal, people are absolutely receptive. Back in the day when platinum was $700 an ounce, it was easy to up-sell into platinum. But now — yesterday platinum was almost $1,900 an ounce, which prices out a lot of my customers — it’s not a matter of an upgrade, it’s a matter of forget it. They just can’t afford it. It’s like shopping for a Cadillac on a Chevy budget; you might want to, but it’s not going to happen.
“We’re starting to use the palladium for all sorts of stuff, but mostly it’s engagement rings and wedding bands. Although, I am doing more occasional jewelry — rings to pendants — in tungsten and stainless and the 18-karat gold, but for men only. The women won’t touch it. The men like it — especially the tungsten. I think they like the idea that it doesn’t scratch and I think they just like the idea of it. It’s not hard to sell it.”
EILEEN ALEXANIAN, CO-OWNER, DIAMONDS ’N DUNES, KITTY HAWK, NORTH CAROLINA :“The big joke is, if you would have told me seven years ago, or even five years ago that ‘you’ll be selling tungsten and titanium wedding bands and you’ll be selling stainless steel jewelry,’ I would have said, ‘Get out of here. What are you talking about?’ I didn’t think I’d be selling those types of things, but I am. It seems like men — most of those alternative metals seem to be geared to men’s jewelry — like the wedding bands. I’ve sold probably more tungsten and titanium bands. Tungsten doesn’t sound very romantic but people ask for it. I don’t know if that’s because it’s very manly and pretty durable. I have not looked into palladium, but I do know of its benefits. I’m going to look into palladium a little bit more.
“One of the interesting things is what’s going to happen in women’s jewelry. I’m thinking probably lighter-weight pendants, not as much in the gold per se, but more fashion, with a lot of stone setting, like the micropavé stuff, and maybe alternative types of fashion necklaces, like silk cords or leather — things that can still look important.”
RICHARD NEUSTAEDTER, OWNER, NEUSTAEDTER’S FINE JEWELRY, ST. LOUIS, MISSOURI :“I’m not stocking alternative metals at present. But I know there are manufacturers coming out with a combination of silver and gold and I’m sure that will hit the market here. I haven’t heard anyone remark that prices are ‘ridiculously high.’ I think most people realize that gold has gone up and maybe they see the value of it. We’re open to listening to what people have to say about the alternative metals.”
SCOTT CHALMERS, PRESIDENT/OWNER, CHALMERS JEWELERS MIDDLETON, WISCONSIN :
“We sure are stocking palladium. I do a lot of engagement rings and I’m now pretty much doing the majority of them in palladium, if the manufacturer carries it. People are very receptive. They like it because it doesn’t change colors — white gold is still very popular but eventually it does get a yellowish hue to it. And if you can give them a metal that’s similar to platinum in characteristics but the same price as gold, if not less — especially less now with rising gold prices — they love it. What we’re trying to do now is get manufacturers who carry palladium wedding bands. I just stocked at least ten from one company to see how they’ll do because people are asking for them. I’d rather sell a palladium wedding band than a tungsten or titanium. Palladium can be sized and there are more things that you can do with it.”
GEORGE FOX, OWNER, FOX FINE JEWELRY, VENTURA, CALIFORNIA :“We’ve been carrying titanium and tungsten for awhile but it’s pretty limited. I use it for gent’s wedding bands, that’s it. I think it’s more what men wear. It’s industrial and I think it’s cool. One thing I’ve been considering is palladium as an alternative white metal but I haven’t done it yet. I do a lot in-house and palladium is not one of those kinds of things where you can do that much as far as casting goes, so I haven’t been gung ho. Tungsten and titanium to me aren’t noble metals. But I do recognize that there’s a niche for them and I carry them for that reason. But there’s no serviceability after market — you can’t size it or do anything with it. Being a service store, I don’t like it for that aspect. I let people ask, and they do ask, for the alternative metals. But I like to sell, despite market prices, noble metals, precious metals. But I have alternatives for those who want it. No matter how much we romance our product, people are motivated by price.”
Article from the Rapaport Magazine - March 2008. To subscribe click here.