Tulsa World: There's more to gold than price

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There's more to gold than price
Area jewelry retailers say gold still makes an affordable gift

Customer Dianna McGuire looks at jewelry with help from Kevin Kuerbitz at J. David's Jewelry in Broken Arrow last week. JAMES GIBBARD / Tulsa World

By NANCY HOLLINGSHEAD World Staff Writer
Published: 11/22/2009 2:21 AM
Last Modified: 11/22/2009 4:33 AM

Gifts of gold at Christmas are as traditional as watching Charlie Brown's scrawny tree come to life in the 1965 classic "A Charlie Brown Christmas."

But the price of gold in 1965 was $36 an ounce. On Friday — 44 years later — it was $1,146.40 an ounce, up $5 from Thursday.

The higher prices might scare some gift givers as the holiday shopping season approaches, but area jewelers and other retailers say gold still makes an affordable gift.

Joel David Wiland, who operates J. David's Jewelry at 613 N. Aspen Ave. in Broken Arrow, said he's had more men "thinking ahead, and putting things back and then paying for them, instead of the typical male waiting until the last minute to hunt for a gift."

While the average sales ticket has gone down 20 percent, he said, the number of tickets has gone up 40 percent at his store.

But the price of gold is driving up prices, Wiland admitted.

"Of course it affects the pricing, because it costs me more," he said. "The average piece of jewelry, however, doesn't weigh ounces — it weighs a fraction of an ounce. A lot of the value in a piece of jewelry is in gemstone content."

For example, gold cost about $400 an ounce five or six years ago, so it has nearly tripled in cost. However, a $300 ring wouldn't be selling at $900 today, because its gold content must be considered. If the gold content of that $300 ring was only half it's original worth — $150 — the ring's gold price would now be, at the most, $450.

If a customer can't afford gold, Wiland notes that silver has become an extremely popular metal for jewelry.

One of the biggest sellers in silver is Pandora jewelry, especially bracelets, that can be adorned with beads and charms.

"It's the hottest thing I've ever seen in my 22 years in business," Wiland said. "Twenty-two years ago it was tulip rings. What makes the Pandora jewelry so viable is that it's a personalized piece, custom built by the individual. You can start off with a silver bracelet for $100 and add as many pieces as you want."

Vicki Cunningham, owner of Cunningham's Fine Jewelers at 5211 E. 41st St., agreed that Pandora jewelry "is off the charts."

"It's the No. 1 asked-for item," she said. "There's sterling silver, some sterling with gold trim and some solid gold."

Bracelets for the add-on charms come in a multitude of sizes, and a 7-inch bracelet can hold 15 or more charms, Cunningham said as she counted the number of charms on her own bracelet.

"Our silver bracelets start at $25," she said. "You can easily buy a $35 bracelet and three $25 charms, and have a really nice gift for around $100."

Wiland said he knows a lot of jewelry stores are changing their inventory to include more silver. In fact, the National Jeweler Holiday/Fourth Quarter Inventory and Marketing Survey 2009 reports that 72 percent of the jewelers who responded said they would carry slightly (48 percent) and significantly (24 percent) more silver jewelry than last year.

Wiland said he has noticed more silver and gold coins being purchased as gifts. He even has a high school student who comes to his shop monthly to buy silver coins.

Tim Clark Jr., manager of Silver Dollar Jewelry & Pawn at 6573 E. 71st St., said he can't keep gold coins in stock for long at his two locations.

"Once they're in, they're gone," he said.

His store at 71st Street and Sheridan Road has been open at that location for 17 years — and in business for 27 years — and Clark said he has never had a firm policy of raising the prices of gold jewelry when gold prices rise.

"We keep it as it was: a fair, nice price for our customers," he said, adding that the rings his stores carry range in price from $89 to $20,000.

Cunningham said that from now through December is "a man's shopping holiday (at jewelry stores), and we all know that men don't shop until the last minute."

"We'll be busy Thanksgiving weekend, but the bulk of our business will be done the last half of the selling season," she said.

Wiland said he's fortunate to still be in business.

"I have a friend who opened his store in 1990 — I opened mine in 1994 — and he's started his going-out-of-business sale. He's a great guy and has run a good business."

Wiland said today's retail environment is tough, but he is determined.

"We have to work harder, but I don't mind that at all," Wiland said.

"There's 168 hours in a week, and I'm not afraid to use them all."

JCOC pre-holiday study

People buying jewelry as gifts: 11 percent, down 3 percent

Who they are buying for: Spouse or significant other, followed by son or daughter or themselves.

What they are buying women: Earrings, necklaces and bracelets.

What they are buying men: Dress watch, necklace and casual watch.

Amount they will spend: 68 percent between $200 and $1,000; 26 percent $100 to $200.

Fine jewelry gifts: 50 percent spend same as last year; 22 percent will spend more.

When they will shop: 33 percent in November, after Thanksgiving; 24 percent between Dec. 1 and Dec. 15.

Nancy Hollingshead 581-8363
nancy.hollingshead@tulsaworld.com By NANCY HOLLINGSHEAD World Staff Writer

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Few Clothes, America (11/22/2009 3:27:25 PM)

My God! Men are still buying necklaces? The disco look ended in the 70's for the majority.

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