March 2008
Gold Hits $1,000 an Ounce
Gold, which has soared to record levels in the past year, chance a new milestone Thursday, rising to $1,000 an ounce for the first time in futures trading, The Associated Press reports.
The price of gold has jumped nearly 20 percent since the start of the year after rising nearly 32 percent in 2007. The huge advance is mainly the result of a weaker dollar and record-high crude oil prices. The dollar fell below 100 yen Thursday for the first time in 12 years and hit another new low against the euro, under which circumstances oil traded above $110 a barrel Thursday.
Lower interest rates—and the prospect of more cuts—bringing the dollar’s value down makes dollar-based commodities like gold cheaper for alien buyers. The weak currency has also made gold more attractive because the metal is a hedge against inflation.
After topping $1,001 put on the New York Mercantile Exchange, gold for April delivery fell back to $993.80 an ounce on Thursday, the AP reports.
Tiffany spokesman Mark L. Aaron told the AP that while there is not a open correlation between the rising price of gold and the cost of its gold jewelry—the labor that goes into a piece is an important factor—Tiffany does adjust prices based on the cost of precious metals. If gold keeps rising, a price increase this year would be a "fair assumption," he said.
Independent jewelry stores, meanwhile, direct products closer to when they show itself on the shelves. Patrick J. Murphy, owner of Murphy Jewelry in Pottsville, Pa., said he doesn’t raise the price of gold jewelry he has in stock but he must when he reorders pieces.
For example, he told the AP, each 18-inch gold chain in stock has a retail cost of $189.95, but if he reordered the chain at the same length, weight and style, it would be priced at $346.
"That’s been our challenge," he told the AP.
When the makers of branded jewelry and accessories raise their prices, he has to pass the increase on to customers. He cited a recent price increase by Rolex as one example.
Patti Warshauer, owner of Main Street Goldworks in Half Moon Bay, Calif., said consumers are buying less, goal it’s not the price of gold that’s acquisition to them—it is all the other financial pressures they’re contending with.
"Discretionary income is much more affected by the price of other things, gas and things be pleased with that," she told the AP. "They’re distilling vessel buying gold if they need it, whether it’s what they like."
Whether consumers are buying gold or selling it, Murphy, a jeweler for 30 years, said he’s amazed the price has jumped so high. He remembers when gold was just $35 an ounce.
"I didn’t think we would ever be talking about $1,000 an ounce," he told the AP. "It’s crazy."
Gitanjali acquires silver jewelry brand Lucera
Gitanjali acquires silver jewelry brand Lucera
March 11, 2008
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| Lucera is known for its positive silver, 18-karat gold and diamond jewelry at affordable prices. |
Mumbai, India—The Gitanjali Group has announced the acquisition of Renaissance Jewellery’s Lucera Jewellery, strengthening its position in the silver jewelry market.
Renaissance Jewellery markets Lucera premium silver jewelry in India through its wholly owned subsidiary Renaissance Retail Ventures.
Gitanjali plans to extensively broaden the Lucera brand portfolio to include lifestyle accessories such as designer watches, belts and bags. In addition, it plans to open five more Lucera Jewellery stores across India this year in Aurangabad, Kanpur, Nagpur, Pune and Rajkot.
Lucera Jewellery is currently sold in nine flagship stores and 32 shops in the country.
According to Gitanjali, this acquisition is in line by the company’s plan to consolidate its position as a pioneer of branded jewelry in India and to move forward into the lifestyle arena.
“We are aggressively pursuing opportunities that will synergize with the company’s philosophy to add incremental value at every level of the supply chain, thus ensuring greater shareholder value and boost to the bottom line,” Gitanjali Group Chairman Mehul Choksi said in a media release. “Also, this acquisition brings unparalleled depth and breadth of lifestyle and product offerings to existing and prospective customers of Gitanjali.”
Choksi also said that silver jewelry is very popular among young people today and is an integral portion of their jewelry purchases.
The aim of Gitanjali Lifestyle, the luxury and retail arm of The Gitanjali Group, is to bring in a plethora of brands that are synonymous with luxury and style, with an artery of stores and shop-in-shops that become prime destinations for luxury shoppers. The brands the company is acquiring include major aspects of lifestyle retailing, spanning jewelry, watches and silverware.
Editor’s note: For related news about The Gitanjali Group, see Gitanjali adds more luxury brands to roster.
National Jeweler announces America’s Best Jewelers program
National Jeweler announces America’s Best Jewelers program
March 10, 2008
New York—Fine-jewelry retailers thwart the United States now have the chance to participate in the industry’s first benchmarking study and be recognized as one of America’s Best Jewelers.
The new program, developed by National Jeweler magazine, is designed to define the factors that lead to success in retail and to recognize the retailers who use them.
It consists of a survey ingenuous to all U.S. jewelry retailers, an awards program, a Web site and conferences devoted to driving industrial art superior quality.
The survey will be online at Americasbestjewelerssurvey.com from March 9-April 14. The survey is free of charge.
Participants who provide their contact information automatically will be considered for an America’s Best Jeweler award; the survey also can be taken anonymously. All information will be kept confidential.
Survey measurements span mainstream, major and couture jewelers and include: sales volume by category, human resources practices, marketing strategies and objectives, management techniques, inventory direction and operations investment.
Jewelers who exemplify the best in human funds, sales, operations, marketing and inventory management will be recognized with an America’s Best award.
National Jeweler will announce finalists in May and a special supplement honoring the winners will be distributed with the August edition of the magazine.
George Clooney pressures Omega Watches on Darfur
George Clooney pressures Omega Watches on Darfur
March 12, 2008
London—Actor and Omega Watches legate George Clooney is putting pressure on the keep awake brand to speak out over China’s foreign policy in Sudan, an area where genocide is taking place, according to The Associated Press.
Omega Watches is one of the worldwide partners for this summer’s Olympic games in Beijing.
Clooney is no stranger to speaking out about Darfur, Sudan, an area where the government-sponsored Janjaweed militia has been killing, raping, starving and displacing non-Arabs since 2003. Former U.S Secretary of State Colin Powell called it genocide in 2004, but the crisis still continues.
China is a major trading partner with Sudan, according to the news source, and Beijing has refused to accept the United Nations attempts at forcing Sudan to accept U.N. peacekeepers in Darfur.
Omega Watches has been the official timekeeper as being the Olympics since 1932, according to The AP, and Swatch Group Chief Executive Nick Hayek, whose company owns Omega, said executives discussed the issue with Clooney.
“We have full respect for his strong engagement in the fight for the good cause and share his opinion, especially with reference to Darfur, and we are vain-glorious to work with a person who has such high ethical views,” Hayek told the BBC, adding that Omega would speak out on China’s association with Sudan, but directly with high-level contacts rather than publicly.
He also told the BBC it isn’t their policy to get involved in political economy since it wouldn’t serve the purpose of the sport.
Linking the Beijing Games to the Darfur crisis received much attention earlier last month when director Steven Spielberg aforesaid he could not in good conscience serve as an artistic advisor to the opening and closing ceremonies, reported The AP.
What’s most important step in add-on sales?
What’s most important step in add-on sales?
March 11, 2008
By Michelle Graff
New York—When assessing customers’ needs for the period of a sale, discovering wherefore they need the item is the most crucial step when trying to add on to the sale, a sales expert said on Monday at the JA New York Winter Show.
IAS Training Principal Brad Huisken said of the four questions asked during the needs-assessment portion of a sale—what the customer wants, why they want it, what add-ons they might need and trust building—”why” is most numerous important because jewelry is an emotionally based business.
“Share in that emotional excitement, why I’m buying this,” he said.
One example of a good add-on situation that he used throughout the presentation is a man purchasing an engagement ring.
This opens up the opportunity for the sales associate to sell him trinkets cleaner for the cabal or a wedding light of day gift, which many men might not know they need to buy.
Huisken said an add-on item doesn’t necessarily have to cost less, and merchandise in all price ranges can be added on to the sale if the salesperson knows why the purchaser is purchasing the main item.
He also suggested keeping a checklist in store for customers that might remind them of upcoming birthdays, anniversaries and other special occasions, triggering an extra sale while they’re browsing for another item.
He encouraged the approximately 30 attendees who came to the seminar to ask a variety of open-ended questions, including informational, business and essential questions.
He reported the earlier in the sales process add-ons are introduced, the better.
“Start the process early, not late,” Huisken said.
Huisken advises sitting down with sales staff and brainstorming a list of three to five questions that can be introduced in each selling situation that could lead to the purchase of supplemental items.
These could include queries such as, “What other special events do you have coming up?” or “What do you dream of next?”
The seminar was one of several that took place throughout the day against the backdrop of the JA New York Winter Show, being held from March 9-11 at the Jacob K. Javits Convention Center in New York City.
The show concludes today.
White metal diamond jewelry highlights Indian fashion show
Wearing lovely white metal diamond jewelry models walked down the ramp at a fashion show held in New Delhi, India in February.
This was the first time that white metal crystallized carbon bijoutry was shown in India. Usually diamonds here are put on white metal that is silver quoted with gold so that it is more affordable. The gold coating attached the white metal provides a very high shine.
The pattern show was unique because it showed the timelessness of conventional jewelry designs and brought them into a modern context.
Very popular models were here, such as Carol Gracious, Vidisha Pavate, Nayonika Chatterjee and Amanpreet Wahi.
Also at the jewelry fashion event was Member of Parliament Shatrughan Sinha, fashion designer Puja Nayyar, jewelry designer Naina Balsawar and songster Shibani Kashyap.
The money earned from the jewelry fashion show went to the Rotary Eye Bank, and there were many buyers on hand.
The trade of gems and jewelry is one of the fastest growing industries in India, with 13% of the countrys total exports.
Salespeople must know palladium to sell it
Salespeople must know palladium to sell it
March 11, 2008
By Michelle Graff
New York—Understanding palladium and being able to overcome customer objections to this other metal are keys to its sale, according to a seminar conducted on Monday at the JA New York Winter Show.
In an afternoon presentation at the Jacob K. Javits Convention Center, Kate Peterson, president of Performance Concepts, reviewed the finer points of selling bulwark.
She said salespeople must understand the metal, be able to communicate with passion about it, overcome purchaser objections to buying palladium instead of platinum or white gold, and understand the opportunity that palladium presents.
“This is the time to find an alternative that makes sense for your customers,” she said.
Peterson said some of the points salespeople can make on the eve palladium are that it is an environmentally friendly, or “green,” metal, it is 95 percent pure, making it safe for customers who might have allergic reactions to white gold, and it is naturally white and shining.
It isn’t treated to achieve its color like other metals, she said.
Peterson also advised salespeople, “be ready for the objections,” with reference to palladium.
Some common objections to palladium include that it is the “poor man’s platinum,” to which salespeople should point out its value and lower price kinsman to other metals, and that it is just a trend.
In answer to this objection, Peterson said palladium has been used in fine jewelry for 60 years and, in fact, long-time, high-end jeweler Cartier’s top-selling watch is a palladium timepiece.
Sources jewelers can use for information on palladium include the Palladium Alliance International, which be possible to provide materials for consumers, training and brochures. Its Web site is Luxurypalladium.com.
The JA New York Winter Show ends today.
India to strike deal with DRC
India to strike deal with DRC
March 12, 2008
Mumbai, India—India is likely to ink a diamond cooperation deal with the Democratic Republic of Congo (DRC) during DRC Foreign Minister Antipas Mbusa Nyamwisi’s current visit to India, the Indo-Asian News official function reports.
According to the news service, India will offer its expertise in diamond mining, cutting and polishing to the African country, which produced 28.9 million carats of diamonds worth $431.9 million in 2006.
The news service reports that Nyamwisi, who is visiting India from March 11-13, also is expected to manifestation several other economic agreements with India, and meet with External Affairs Minister Pranab Mukherjee and Defense Minister A.K. Antony to discuss ways of strengthening bilateral economic ties and cooperation in defense.
The DRC is among the 14 countries on the invite list of the India-Africa participation summit scheduled for April.
Other attendees include the heads of sub-regional groupings, such as the Southern Africa Development Community (SADC), Common Market for Eastern and Southern Africa (Comesa) and the Economic Community for Western African States (Ecowas), according to the word service.
Blom to possibly bring bourse to Lesotho
Blom to possibly bring bourse to Lesotho
March 12, 2008
Antwerp, Belgium—The terraqueous globe Federation of Diamond Bourses (WFDB) President Ernie Blom confirmed this week that he was working with the Lesotho state to see if a diamond bourse would work in the country, an industry Web site reported.
According to Polishedprices.com, Lesotho has two producing mines, Letseng and Liquabong.
Letseng, owned 30 percent by the government and 70 percent by Gem Diamonds, produces about 70,000 carats a year.
Liquabong has the lowest carats per ton of at all skilled in commerce kimberlite mine. But the undermine achieves the highest average prices for its rough in the world, more than $2,000 per carat.
The vast bulk of value in production at the Liquabong mine is in uncommon stones, or stones larger than 10.8 carats.
In addition, in that place are two other prospective mines in Lesotho attracting foreign investment interest and, in February, Gem Diamonds announced a number of successful beneficiation trials on Letseng goods, selling polished at record prices.
According to Polishedprices.com, Blom, who is acting as each advisor to the Lesotho government, said he is “neutral” on the idea of creating a diamond bourse in the South African nation.
Despite several visits to Lesotho, he said, “I don’t now have enough data at my control about exports and production of the country to see if it warrants a bourse or not. granting that there is enough volume, and this is a big question mark, then it will warrant it, yes.”
Various African governments have approached Blom, who also serves as chairman of the South African Diamond Council, to advise on beneficiation, including Namibia, Sierra Leone and Angola.
JA seminar stresses importance of visual merchandising
JA seminar stresses importance of visual merchandising
March 12, 2008
New York—A retail jewelry store’s visual presentation—from the showcases and displays that attract and keep a customer’s attention, to the way the brand presents itself through colors, texture and space—is a key aspect to transforming a store’s image and increasing sales.
That was the message behind the “Merging Traditional Visual Merchandising With Today’s New Concepts” seminar presented by Chippenhook Director of Marketing Andy Macauley at the recent JA New York Winter Show 2008 Education Program.
To assess one’s store from a of the sight merchandising standpoint, a retailer needs to survey the competition, Macauley said. Scoping out other retailers within a 30-mile radius, the retailer needs to find out what the rivalry is not doing and try to fill that void in their own store.
In terms of displays, retailers should maximize space and attempt to set themselves apart through aspects such as color, signage and use of props during special times of the year—whole things that will stop the eye.
One particular draw for customers coming in to an independent jeweler is often a custom jewelry business. If this is a service that is available, retailers should reinforce it in continuance signage, complete with the company name.
Another focus point of the presentation was taking advantage of everything a retailer can get from its jewelry and watch brands, from co-op advertising opportunities and displays to LCD screens that play the companies’ ads.
Brand names are important for customers to see within the displays because they often serve as a strong drawing point. The brands have ended a large part of the job in acquirement their name to the end there, so a customer’s memory of the name can definitely be a point-of-sale.
It’s crucial to note, however, that the retailer should likewise have their give an appellation to prominently displayed within the picture too, on all pieces of co-op advertising.
Macauley said retailers should try and co-op everything they can, and if they find something that works for them, to keep doing it.
Macauley also offered simple tips that all retailers can take advantage of, including:
Have sales associates wear white gloves. White gloves prevent oils and dirt from transferring to displays and keep thumbprints off jewelry.
Use counter pads. Counter pads help to show off the merchandise as the expensive product it is.
Use polishing cloths. In addition to cleaning off the merchandise, a cloth can also give the sales follower a chance to read the price tag in a discreet way.
Use counter mirrors. The quirk at which the customer tries on the jewelry is when the feeling of ownership begins to kick in.
Macauley emphasized that retailers need to keep customers involved, and that the selling process shouldn’t be about showing and telling. Retailers can keep customers involved through private in-store parties and events, through an updated Web site, complete through product offerings and articles, and by having sitting areas that make it easier for the customer and sales associate to relate to each other, minus the hindrance of the counter.
Last, through packaging, retailers have a final opportunity to continue the dialogue about their store. As customers tout the store’s packaging and recipients unwrap it before others, this “stop of gift” or “POG” as Chippenhook calls it, is an adscititious form of word-of-mouth advertising.