The U.S. economy may be easing out of the recession but it will be some time before consumers are ready to spend freely on non-essential items. This attitude will definitely apply to items such as jewelry. While several jewelers have felt the sting of restrained spending and gone out of business, Buxbaum Jewelry Advisors executive vice president Stevan Buxbaum sees reason for optimism. It’s all about precious metals – specifically – gold.
Buxbaum notes that he expected a significant number of jewelers to close their doors during the recent recession. Instead, his firm has helped jewelers capitalize on a trend. More consumers need to sell their gold jewelry for cash. Jewelers who have established themselves as reputable businesses in the community are using both cable TV ads and online techniques to encourage consumers to bring in their precious metal pieces for evaluation. Because so many new businesses are marketing themselves as purchasers of gold, Buxbaum believes traditional jewelers can compete by emphasizing their expertise in the industry and assure consumers that they are getting a fair price for their precious items.
In addition, some jewelers are also taking in gold and issuing store credits to encourage consumers to purchase new items. As jewelers struggle to find their footing in the new economic reality, Buxbaum says that many should also “craft a strategy to introduce more-affordable pieces that would appeal to a wider customer base.” Jewelers nationwide will be introducing new marketing campaigns that emphasize their “we buy gold” services as well as their new product lines in order to increase revenue for the rest of the year.
[Source: Gold-Buying Helps Jewelers Weather Great Recession. Buxbaum Jewelry Advisors. 14 May 2010. Web. 17 May 2010]