Solving a Precious Metal Problem

The jewelry industry is changing, according to Rob and Linda Stewart of My Jewel Shop in Jenkintown.  

The price of gold was a record-setting $1,629 per ounce on the day Patch visited My Jewel Shop.  And the price of silver on the day of that visit—about $40 per ounce—was above the cost that gold was selling for when My Jewel Shop opened 40 years ago.

Simple gold posts on the back of earrings that used to cost the Stewarts $0.65 now cost them $4.13; a tiny bit of gold solder for repairs and custom work that they used to stock at $8 to $10 now costs them $35.

“There are no more ‘feel good’ purchases,” said Linda Stewart. “The days are over when women used to come in and treat themselves to a favorite precious piece for $100 to $200.”

She said that much of what’s passing for gold today is “so light and thin I call it ‘terminal’ jewelry, and I won’t sell it.”

The Stewarts emphasize service and quality. They work with their customers.  If someone has $300 to spend on a necklace, they might steer them to pearls rather than to the gold chain. 

“The pearls will look like something,” explained Linda Stewart.  “But you’d have to get awfully close to even notice a $300 gold chain.”

A stunning 14-karat white and yellow gold necklace sat on a scale in their office. It had been removed from the display case and was no longer for sale. Why?  Its sticker price read $2,145.  If the Stewarts sold it and tried to replace it, it would cost them $2,158. They had purchased this piece when an ounce of gold cost $390. 

Retailers can’t afford that kind of loss.

[As of Aug. 9, gold was selling at about $1,750 per ounce—upping the replacement cost of the aforementioned necklace to about $2,320.]

The plight of “feel good jewelry” is symbolic of an even greater casualty due to the rarefied hike in prices of precious metals. 

“There’s no more middle class in jewelry,” Linda Stewart said. “There are fewer sales, and they’re the bigger ones.”   

And instead of traditional gold and platinum for wedding bands, Stewart noted that at the big industry trade show recently in New York City, alternative metals like tungsten, stainless steel and palladium were being touted because of their relative affordability to this middle market segment.

Another trend the Stewarts see? Chests full of silver and estate jewelry that area being sold back to jewelers by the middle class for the melt-down price of metals.

A customer brought in a second bag of such items to My Jewel Shop while Patch was speaking with the Stewarts.

One customer asked for help carrying in her items a few weeks ago.  Rob Stewart said he had to stop three times on the way in from the car because the boxes were so heavy. That customer walked away with $9,000—just for the weight of the precious metals.

Sadly, they said, many of the silver flatware replacement houses are stacked with new inventory; it’s very difficult to find any buyers for silver-plated platters. Yet, the companies that made many of the now-vintage silver tea services and fancy table items are no longer in business.

Some items pull on the heartstrings of the Stewarts, who hand craft a number of their one-of-a-kind pieces. They appreciate the labor that went into many old estate heirlooms in a way that most people don’t.

“I’ve seen things I never knew they made,” said Rob Stewart about some unusual pieces brought to him for the price of the scrap metal.

There was also a silver wine goblet inscribed in 1913 to a couple from their children on their silver wedding anniversary. Today’s generation would rather pocket the cash than polish silver.

These are not the times when sentiment reigns.  

But the Stewarts are developing innovative solutions to help customers maximize the value of their precious discards. 

In some cases, they use the price of the “melt down” to trade for desired items in the store or for repairs and custom redesigning of their old jewelry. That’s a big win-win for both the customer and for My Jewel Shop: Customers are rewarded for cleaning out their jewelry boxes and it also moves bargain-priced inventory, if at a lower profit margin to the Stewarts than just a few years ago.

Another innovative solution will give fresh life to the occasional treasures the Stewarts have discovered in rummaging through the boxes of discards for melt-down. Items they don’t have the heart to destroy will be featured in a special sale as the December gift season approaches and in honor of My Jewel Shop’s 40^th anniversary in Jenkintown. 

This sale will be by invitation to regular customers. Both customers and jewelers will share in the value of the spread between the melt-down price and the replacement value. Maybe this way, the middle class can participate in holding onto the artistry and labor that went into these rescued pieces. 

My Jewel Shop is located at 411 Old York Road, Jenkintown. The store may be reached at 215-887-3881, or at www.myjewelshop.com.