Dispatch: Local Jewelers React to Gold Price Increases

Unlike the housing market, whose value has plummeted, the value of gold has skyrocketed and local jewelry stores have had to adjust their business models.

According to industry guide goldprice.org, the price of gold has jumped from about $250 an ounce in 2001 to over $1,750 per ounce today.

The change has seen many local stores adjust their business strategy. recently unveiled a new at-home gold buying service to capitalize on the trend.

Howard Cohen, a Precious Metals Trader at Rocky Point Jewelers, commented on trend of jewelry stores shifting more and more towards gold buying.

“When gold spiked this past summer there was a huge influx of activity in people selling their gold," he said. It also has to do somewhat with the economy because people are a little short on cash. This is a great way to create some cash.”

Cohen, an industry insider for over twenty five years, stated that the in-store demand has been tremendous. He believes that the at-home service is the first of its kind in the area. The strategy behind the service is to appeal to customers who don’t feel safe travelling or waiting in line in a store with customers while holding their valuable jewelry. The service is also helpful for those who may find the process intimidating and prefer the comfort of their own home, or those who can no longer drive.

Cohen believes that the Rocky Point Jewelers name gives them credibility and an advantage over the services advertised in television commercials and roadside signs.

“This jeweler has been serving the community for 32 years," he said. "It’s been a vocal point in the community for a very long time. They’re very active in the local church; they do a lot of charity. If you’re going to be selling gold, you’re going to want to do it through an organization that you trust.”

The increase in value has also changed how stores charge for gold-based items. Kelly Mazzotta, owner of , says the she has tried to resist increasing her prices.

“The price of gold has more than doubled since I started," she said. "You can charge more, but on the flipside it’s going to cost me more. It’s a double-edged sword.”

Mazzotta also said that she’s noticed a change in customer mindset, that people are putting a lot more thought into what they’re buying.

Andrew Netusil, owner of in Rocky Point, has also seen an effect in his business.

“I’ve seen less custom work go out the door,” he said. “It’s so expensive.”