During a session titled “360-Degree View of 2024: Industry Market Outlook, Expert Insights, and Business Opportunities,” held at the American Gem Society Conclave in Austin, Texas, panelists discussed the pressing issues confronting the jewelry industry this year.
Chris Casey, managing partner of Tenoris, which analyzes point-of-sale data from retailers, noted that jewelry sales have returned to pre-pandemic levels after the surge witnessed during the COVID-19 pandemic. He emphasized the industry’s transition from the turbulence of COVID-19 to a period of stability.
However, panelists highlighted ongoing challenges, particularly the significant increases in the price of gold. Larry Rickert, owner of Jim Kryshak Jewelers in Wausau, Wis., emphasized the impact of rising gold prices on jewelers’ costs and urged caution among manufacturers regarding pricing strategies. He stressed the need to consider the final retail price and consumer budgets, as inflated costs could deter potential buyers.
Casey pointed out that platinum is gaining traction as an alternative to gold due to concerns about its escalating price. However, he cautioned against complacency, as platinum’s performance is closely tied to fluctuations in the gold market.
In addition to the gold price surge, the declining prices of lab-grown diamonds emerged as a significant concern. Casey referred to this trend as a “ticking time bomb” for the industry, warning of diminishing profit margins for retailers despite increasing sales volumes. He underscored the urgent need for the industry to address this issue and adapt strategies to maintain profitability.
The session also addressed challenges in retaining employees and adapting business models to navigate rising costs and shifting market dynamics. Rickert highlighted the difficulty in retaining skilled staff, attributing turnover to factors such as employee engagement and evolving job preferences among younger generations.
As the industry grapples with these challenges, panelists emphasized the importance of strategic planning and flexibility to sustain business operations and capitalize on emerging opportunities. While uncertainties remain, proactive measures and a focus on innovation will be crucial for jewelers to navigate the evolving landscape successfully.
