After rising above $1,900/oz. in mid 2011, the gold price now hovers around $1,250, offering a generous discount to gold buyers everywhere. Lower input costs translate directly to improving retail sales. Now, consumers attracted to gold’s intrinsic value are more comfortable buying jewelry. As a result, holiday sales at retail jewelers serviced by C.G. Creations are outpacing last year’s numbers by leaps and bounds. This excitement is eliciting nostalgic optimism from some retailers.
“It’s almost like we’re back in the 80’s!” says Gail Istra of the Jewelry Exchange in Northvale, N.J., referring to the highest volume of gold jewelry sales she ever witnessed.
This is perhaps the best news the jewelry industry could hope for. From classic to contemporary styles, domestic retail jewelry sales are rising across the board. Traditional styles of gold chain like Diamond-Cut Rope and Men’s Heavy Links are seeing a huge boost this season, including styles that haven’t been in fashion for decades.
Much of the growth is attributable to an improving economic landscape. The typical U.S. consumer sold most of his gold during the post-crash “cash for gold” mania and is now left with an empty jewelry box. This absence presents a vastly unrecognized opportunity for retail jewelers to sell gold jewelry.
“After years of muddling through following the financial crisis, the U.S. economy is finally showing signs of real recovery,” says Lance Fiasconaro, chief economist for C.G. Creations. “The fiscal cliff debacle really shook business confidence last year. Consumers that we’ve surveyed are much more optimistic this year.”
A more upbeat society expresses itself with all that glitters...gold. The flashier look of yellow gold jewelry is becoming more trendy, even compared to white gold and silver jewelry that have dominated the domestic jewelry market for over a decade.
“Yellow gold jewelry hasn’t sold since 9/11, but we are now seeing some serious momentum in that category,” Fiasconaro adds.
This momentum is finding its way to the northernmost regions of the country.
“Yellow gold shines again! From earrings to toe rings and everything in between, our customers have been requesting this color to adorn themselves. Thanks to C.G. Creations’ stylish and fashion-forward collection, we can offer them both an affordable and extensive selection to sparkle in,” says Thomas Laurrie, general manager of Firth Jewelers in Niagara Falls, N.Y.
C.G. Creations reminds retail jewelers that they cannot sell what they do not have. Karat gold jewelry is back in the forefront of the jewelry industry. Independent retailers should especially be aware that their customers are looking for gold and will likely take their business to chain retailers if their needs are not met. The fastest way to lose a sale is not to have the product the customer wants.
For more information about C.G. Creations’ gold jewelry offerings, visit http://CGCreations.com or call 1-800-431-1606.
ABOUT C.G. CREATIONS
For 30 years, C.G. Creations has provided retailers a dependable source of fine jewelry by offering unparalleled service, quality and selection. The company has garnered a reputation among jewelers as a leading source of major jewelry trends, with such brands as Wind & Fire™ Expandable Bangles, Zable® Beads, Stellar White®, Michael Anthony® Charms, CharmGlo™, Gold Horizons® and the Daria by DynaFlex™ Italian Charm Bracelet.