It's ALL About Price! Gems, Pearls, Diamonds in 2007


Many buyer's are always asking "how do you decide what to create?" or "how do you pick and choose a selection of jewelry and gems through jewelry store or manufacturers liquidation"? I can tell you, it's not easy. It's all about combining various tastes and addressing the current trends in the jewelry industry.


Last year, it was all about color - sapphire blue, deep emerald greens and rich ruby reds however, citrine, peridot, mystic topaz and iolite were just as popular. This year we're seeing a new trend toward combining bold colors with diamond accents. Buyer's are preferring white gold over yellow gold and many are opting for 10KT. goods, as they can achieve more bang for the buck with big bold stones inconjunction with lower precious metal prices.


Thanks to the diamond industry advertising Journey Pendants, these pendants were as popular as ever during Christmas and now we're seeing a resurgence for the Valentine's Day market. Again, buyer's are preferring Journey Pendants set in white gold, as opposed to yellow gold.


Various combinations of cuts are now in vogue. Watch the awards this year and you'll see many stars wearing a combination of multi-colored gems with combo-cuts. In other words, the top gem in a pendant may be emerald cut, followed by a pear shape cut gem and a third gem cut as a heart or oval.


When we liquidate a manufacturer, it's not a happy moment, as we know it's a fellow jeweler (an entrepreneur) who just got in over his or her head. They set up a manufacturing facility and produce some fabulous pieces only to go out of business before the end of year two.


You might wonder how this happens and I can tell you that it's all about leveraging the product versus cash flow. Product is produced, credit lines are extended and the creative process begins. Along the way, suppliers raise gem prices and precious metal prices begin to rise as well. Create pieces with medium to high end quality diamonds and you have a recipe for disaster, as the diamond suppliers are the least forgiving in an industry built upon deception.


The goods (as they are called in the industry) are visited at a "site" and foraged through. The pieces are picked and/or passed upon. Thousands of pieces are picked through within 5 short hours. The "keepers" are then inventoried and packaged for delivery.


Selecting what to buy is an art form. Buyer's pick and choose based upon past experience and sales reports. What sold at Christmas, won't necessarily sell during Valentine's Day. What was popular last March, might not be as popular this March (and so on). Trends in fashion change and therefore, we must study fashion trends and then acesorize those trends by "dressing up" the model.


There's a new trend toward pearls this year just because Speaker of the House Pelosi (including Hillary Clinton) are wearing "big and bold" South Sea and Tahitian Pearls (did you notice how many ladies were wearing RED during the State of the Union Address - now, there's a trend) . However, these pearls can run upwards to $20,000.00 or more per strand and those with a limited budget, just can't afford to buy expensive pearls. Solution? Offer Akoya's in 6.5 to 8 mm's and the lady who wants an expensive look (without shelling out the dollars) can achieve the look she seeks for under $50.00.


Want the big and bold Pelosi/Clinton look? Opt for 9.5 to 11mm freshwater pearls, which are dyed a light golden hue or a dark color resembling Tahitian pearls (no one will know the difference).


What's on the horizon this year? Weddings! Consumer's are going back to "simplicity" and opting for matching bands without diamonds. Again, less is more. Buying "cheap" does not mean loss in quality, it just means you're a savvy shopper and are buying goods at pennies on the dollar!




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