ColumnistsOct 01, 2025
Peter Smith: Why Vendor Success Starts With Self-ReflectionColumnistsNov 04, 2025
Peter Smith: What Do Birds Have to Do With the Price of Gold?
Smith cautions retailers against expending too much energy on things they can’t control, like the rising price of gold.
Peter Smith is an industry consultant, speaker, sales trainer, and author. He can be reached via email at TheRetailSmiths@gmail.com.
I recently received a call from a supplier for whom I occasionally consult.
The principal partner was very distressed about the ever-increasing gold prices and wondered what he was going to do with his business.
Gold, as we all know, has been a runaway train, going from $2,063 an ounce at the beginning of 2024 to $4,100 as of writing, a 99 percent increase.
For the psych nerds in the back of the room, there’s a believability to the number 99 that doesn’t hold true for 100. The latter feels like we made it up, rounded the corners for hyperbole’s sake, whereas the former is very specific, and infinitely more believable.
Pricing psychology lesson aside, the number is real (do the math) or, at least it was real as of writing.
The other thing that was real was the stress that my guy was feeling about the crazy prices.
There’s an interesting Chinese proverb that goes like this: “The birds of worry and care fly above your head, this you cannot change; but that they build nests in your hair, this you can prevent.”
That, naturally, is what I advised my guy.
“Stop letting the birds of worry build nests in your hair,” I told him.
Alright, not exactly. I said nothing to him about birds, but I did suggest he stop worrying about things he can’t control and, last I checked, he has nothing whatsoever to do with the price of gold.
What he does control is his mindset and the attitude he brings to his business every morning, presumably after he’s checked the price of gold.
Frank Lloyd Wright, when he wasn’t designing the wonderful Biltmore in Arizona (how crazy is it that the Centurion show at the Biltmore is just around the corner?) once said, “The truth is more important than the facts.”
The fact is gold prices have surged beyond our wildest imagination. The truth is the degree to which you allow that fact to affect your business depends on your attitude and mindset.
In “What Happy People Know,” Dan Baker and Cameron Stauth wrote, “We don’t describe the world we see—we see the world we describe.”
The world my guy was seeing was not the world of a happy person.
Assuming you maintain your gross margin delta between your cost and your selling price, that percentage will not change, but it will deliver more dollars than a year ago because you’re getting the same percentage of a higher price. That includes slower selling inventory that you shouldn’t be replacing.
Your owned inventory, including all those non-performing headaches, is worth a whole lot more than just a year ago and that’s an awfully good opportunity for melting and repurposing the cash into a better ROI, whether that’s your best-selling products, or even your slush fund.
Related stories will be right here …
The principal partner was very distressed about the ever-increasing gold prices and wondered what he was going to do with his business.
Gold, as we all know, has been a runaway train, going from $2,063 an ounce at the beginning of 2024 to $4,100 as of writing, a 99 percent increase.
For the psych nerds in the back of the room, there’s a believability to the number 99 that doesn’t hold true for 100. The latter feels like we made it up, rounded the corners for hyperbole’s sake, whereas the former is very specific, and infinitely more believable.
Pricing psychology lesson aside, the number is real (do the math) or, at least it was real as of writing.
The other thing that was real was the stress that my guy was feeling about the crazy prices.
There’s an interesting Chinese proverb that goes like this: “The birds of worry and care fly above your head, this you cannot change; but that they build nests in your hair, this you can prevent.”
That, naturally, is what I advised my guy.
“Stop letting the birds of worry build nests in your hair,” I told him.
Alright, not exactly. I said nothing to him about birds, but I did suggest he stop worrying about things he can’t control and, last I checked, he has nothing whatsoever to do with the price of gold.
What he does control is his mindset and the attitude he brings to his business every morning, presumably after he’s checked the price of gold.
Frank Lloyd Wright, when he wasn’t designing the wonderful Biltmore in Arizona (how crazy is it that the Centurion show at the Biltmore is just around the corner?) once said, “The truth is more important than the facts.”
The fact is gold prices have surged beyond our wildest imagination. The truth is the degree to which you allow that fact to affect your business depends on your attitude and mindset.
In “What Happy People Know,” Dan Baker and Cameron Stauth wrote, “We don’t describe the world we see—we see the world we describe.”
The world my guy was seeing was not the world of a happy person.
Assuming you maintain your gross margin delta between your cost and your selling price, that percentage will not change, but it will deliver more dollars than a year ago because you’re getting the same percentage of a higher price. That includes slower selling inventory that you shouldn’t be replacing.
Your owned inventory, including all those non-performing headaches, is worth a whole lot more than just a year ago and that’s an awfully good opportunity for melting and repurposing the cash into a better ROI, whether that’s your best-selling products, or even your slush fund.
If you are a retailer, the price of gold can help fuel a quick pop-up sale, such as a 50/5, where you offer 50 percent off select merchandise for five hours, or five days.
The higher price can be a good source for a season-long 50 percent off case (remember, cash is king), but don’t trade your customers down to a sale case in lieu of selling them the best solution for their needs.
Ideally, the 50 percent off case provides good add-on sales and additional purchases ahead of need.
There is a psychology attached to this called the scarcity effect, where customers will buy for fear of missing out on a limited-time opportunity.
If your pop-up sale lasts too long, or your sale case is overflowing, you’ll kill the opportunity.
Whether you are a retailer or a supplier, a higher average price effectively means you can afford to sell fewer units and still deliver your projections. That’s important in the retail environment where foot traffic isn’t growing, but the principle applies equally well to suppliers.
While it is easy to become absorbed in industry-speak, the reality is the vast majority of customers (at retail) have no idea about the price of gold or how it might impact prices in jewelry stores.
They have an occasion that needs to be celebrated, and they expect quality retailers to provide a good experience and a solution for their needs.
There’s a Chinese proverb for that, too. It says, “Opportunity always favors the prepared.”
Happy selling!
More on Columnists
The Latest
SurveysOct 16, 2026
How Inflation, Gas Prices Will Affect Holiday Sales The NRF is expecting holiday sales to increase this year, but consumers and retailers alike are facing Grinch-like headwinds.
CollectionsOct 16, 2026
Christina Puchi’s Earrings Hold the UniverseOur Piece of the Week gathers the planets, represented by a variety of colored gemstones, in a pair of 14-karat yellow gold earrings.
IndependentsOct 16, 2026
Reeds Jewelers Expands, Relocates FlagshipThe New York-based jeweler is moving its Amherst flagship store to a larger location in nearby Snyder.
Brought to you by
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional EditionExperience gemstones with greater precision and comfort than ever before.
MajorsOct 16, 2026
Katy Chen Appointed Executive Vice President of Graff USA Chen, who worked at Cartier and Tiffany & Co., will lead retail sales and operations for the luxury jeweler’s 11 U.S. stores.
Weekly QuizOct 15, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
IndependentsOct 15, 2026
Retailer Hall of Fame 2026: Amy and Elise Greenberg For 40 years, sisters Amy and Elise Greenberg have helmed their 126-year-old family business, leading with appreciation and integrity.
WatchesOct 15, 2026
Stephanie Gottlieb’s New Movado Watches Are Made for Your Wrist StackMovado teamed up with the New York-based fine jewelry designer on a new collection of Movado Museum Velura watches.
Brought to you by
Your Piece Could Be the One Editors Talk AboutSubmit your pieces for a chance to win in this year's competition.
SourcingOct 15, 2026
Signet Jewelers, Richemont May Join Bidder for De Beers, Report SaysThe two companies are reportedly in talks to join the Global Diamond Consortium, led by former De Beers CEO Gareth Penny, as per Bloomberg.
CollectionsOct 15, 2026
Wolf x Marla Aaron's New Jewelry Box Is for Some (Not All) of Your ThingsThe “Some of the Things” box follows the two larger “Everything” box designs with the look and function of antique sewing and toolboxes.
IndependentsOct 14, 2026
Retailer Hall of Fame 2026: Coleman and Mitchell ClarkFourth-generation jewelers Coleman and Mitchell Clark exemplify the best qualities of their predecessors: humility, modesty, and confidence.
SourcingOct 14, 2026
Manuel Marcial de Gomar, ‘The Emerald Whisperer,’ Dies at 90The gem hunter, whose 70-year career was defined by adventure and exploration, is remembered for his steadfast faith and sense of wonder.
FinancialsOct 14, 2026
LVMH’s Jewelry Brands Turn in ‘Very Good’ Performance in Q3 Tiffany & Co. continued its full-scale store renovation project while Bulgari’s high jewelry collection generated “record-breaking revenue.”
Events & AwardsOct 14, 2026
Chicago Responsible Jewelry Conference Releases 2026 ProgramThis year’s sessions feature leading voices from human rights, legal, and conservation organizations.
MajorsOct 13, 2026
David Webb Owner Purchases Lugano JewelryThe high-end jewelry retailer was sold to private investment firm Middle West Partners and a group of longtime clients.
Lab-GrownOct 13, 2026
Stephanie Gottlieb Takes Lab-Grown Diamond Collection WholesaleThe jewelry designer has partnered with Sofer Jewelry to distribute her 85-piece lab-grown diamond collection.
IndependentsOct 13, 2026
Retailer Hall of Fame 2026: Sean DunnDunn, this year’s Single-Store Independent inductee, is passionate about innovation and telling the story of natural diamonds.
AuctionsOct 13, 2026
Christie's Geneva To Auction 'Bulgari Pink' DiamondThe 24-carat fancy intense pink diamond ring could fetch up to $18 million at the November sale.
IndependentsOct 13, 2026
Greenwich St. Jewelers’ New Candle Smells Like HomeThe “Island Jewel” candle honors New York City and Puerto Rico and raises money for the island’s water relief efforts.
TechnologyOct 13, 2026
GemFind Is a New JA Member Benefit Partner The partnership will give JA members access to preferred pricing, exclusive benefits, technology solutions, education, and resources.
SurveysOct 09, 2026
These Will Be the 10 Busiest Days for In-Store Shopping This Holiday SeasonStores should expect to see the most customers on Nov. 27, and Christmas week is expected to be hectic too, as Dec. 25 falls on a Friday.
CollectionsOct 09, 2026
Elisa Solomon Collabs With Serendipity 3 on ‘Frozen Hot Chocolate’ CharmThe charm, our Piece of the Week, features brown diamond frozen hot chocolate topped with white diamond whipped cream and a ruby straw.
AuctionsOct 09, 2026
8-Carat Blue Diamond Goes Unsold at UK Jewelry Auction The top lot of Elmwood’s recent fine jewelry sale in London was a 1.84-carat, D color Tiffany & Co. solitaire diamond ring.
WatchesOct 09, 2026
Movado to Sell Majority Stake in Ebel for $66.5MThe watch company agreed to sell a 95 percent interest to a group comprised of F.P. Journe, Chanel, and Swiss watch exec Pierre Jacques.
Policies & IssuesOct 08, 2026
Third Wave of IEEPA Tariff Refunds Begins This round of tariff refunds is for importers that have sued over IEEPA tariffs in the Court of International Trade and won.
CollectionsOct 08, 2026
Brent Neale’s New Collection Goes ‘Back to Basics’It revisits the brand’s most requested silhouettes, from "Pillow"-set necklaces and bracelets to "Signature"-set rings and earrings.
SourcingOct 08, 2026
Ethical Gem Fair Heads Back to BrooklynThe trade-only event includes buying opportunities as well as educational sessions on artisanal mining, the new Paraíba source, and more.
