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!
Editors' Picks
Sponsored by
More on Columnists
The Latest
CrimeAug 18, 2026
2 California Men Arrested in Fatal Vehicle Smash RobberyOne is the driver who allegedly crashed a car into a Sacramento jewelry store in April, striking a 71-year-old employee who later died.
CrimeAug 18, 2026
Thieves Snatch $1M in Jewelry From New Jersey Jeweler9lakha Jewelers in Iselin, New Jersey, was the target of a smash-and-grab robbery on Aug. 8.
Lab-GrownAug 18, 2026
Ring Concierge, Kendall Jenner Collab on Bridal Earrings GiveawayThe jeweler has partnered with Jenner’s 818 Tequila brand to gift lab-grown diamond studs to a bride-to-be and their bridal party.
Brought to you by
Why More Jewelry Retailers Are Hosting Turnkey Estate Buying EventsRetailers are seeking new ways to attract customers, increase traffic, and create revenue – Estate buying events are a popular solution.
Events & AwardsAug 17, 2026
Exhibition on Louis Comfort Tiffany’s Studios to Open at The MetThe exhibition will feature more than 100 drawings of stained-glass lampshades, windows, and more, many created by women and émigrés.
Weekly QuizAug 13, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsAug 17, 2026
Marquise Diamonds Dance in Spinelli Kilcollin’s ‘Wren’ CollectionMarquise-cut diamonds in drop charms are the center of the new collection, reflecting the movement of a dancer in modular styles.
Events & AwardsAug 17, 2026
There’s a New Jewelry Show Coming to FloridaThe inaugural Fort Lauderdale Jewelry, Antique, & Object Show will be held from Jan. 28 through Feb. 1, 2027.
Brought to you by
Wedding Band Trends 2026: Personalization Takes Center StageColored gemstones, artisan finishes, mixed metals, and meaningful details are shaping demand in bridal jewelry.
IndependentsAug 14, 2026
Smyth Jewelers to Open Fourth LocationThe family-owned jeweler will open a new showroom in Bel Air, Maryland, this fall.
CrimeAug 14, 2026
Wife of Man Convicted in Jeweler’s Murder Sentenced for Conspiracy Amanda Ileana Hernandez is married to Carlos Hernandez, one of two men in prison for the 2024 murder of Michigan jeweler Hussein Murray.
TrendsAug 14, 2026
Paul Morelli’s Latest ‘Wavey Vine’ Earrings Embrace ColorThe reimagined jewel, our Piece of the Week, trades the diamonds in the original 1998 design for blue, pink, yellow, and green sapphires.
Supplier BulletinAug 13, 2026
Your Piece Could Be the One Editors Talk AboutSponsored by American Gem Trade Association
FinancialsAug 13, 2026
Pandora’s ‘Talisman’ Collection Shines, Lab-Grown Diamond Sales FallIn the United States, second-quarter sales were flat amid soft consumer sentiment and lower in-store traffic.
AuctionsAug 13, 2026
This Gold Cadbury ‘Conundrum’ Egg Set a World Auction RecordThe 22-karat gold egg, sold at Batemans Auctioneers in the U.K., was part of a 1980s treasure hunt ad campaign for Cadbury Creme Eggs.
SourcingAug 13, 2026
2,488-Carat Diamond, Largest Found in Botswana, Has a New Owner Lucara Diamond Corp., which recovered the “Motswedi” diamond from the Karowe mine, sold the stone for an undisclosed amount.
CollectionsAug 13, 2026
John Hardy Infuses ‘Icon,’ ‘Heishi’ Collections with ColorThe expanded collections now feature hand-cut gemstones like topaz, tanzanite, chrysoprase, chalcedony, smoky quartz, and fire opal.
Lab-GrownAug 13, 2026
Jean Dousset Opens Third StoreThe lab-grown diamond jewelry brand’s newest boutique is in Westfield Valley Fair in Santa Clara, California.
SourcingAug 12, 2026
Eshed-Gemstar on the Painstaking Process of Cutting ‘The Legacy Emerald’The gemstone supplier and manufacturer acquired the remarkable 104-gram Zambian emerald at Gemfields’ auction in May.
CrimeAug 12, 2026
Elderly NYC Woman Targeted in Jewelry Swap SchemeTwo suspects offered to trade the woman a “winning” lottery ticket for her jewelry.
SourcingAug 12, 2026
Another Diamond Mine Poised to CloseFinsch has been in business rescue since May, and owner Petra Diamonds said it sees no viable path forward for the mine.
CrimeAug 12, 2026
Jewelry Store Employee Gets 20 Years to Life in Choking Death of BossMichel Patrick DeSalles was sentenced after pleading guilty to the 2017 murder of Omid Gholian, who owned a jewelry store in Manhattan.
MajorsAug 12, 2026
Frederick Goldman Names New SVP of SalesLongtime industry executive Beth Miller has taken on the role.
AuctionsAug 11, 2026
Verdura Unicorn Brooch With Royal Connection Up for Auction The brooch was owned by Virginia Fortune Ryan Ogilvy, who served as a lady of the bedchamber to Queen Elizabeth II for nearly 50 years.
MajorsAug 11, 2026
Signet Jewelers Selects Mattel Exec to Lead Zales, BanterJamie Cygielman will take on the role on Aug. 24.
IndependentsAug 11, 2026
Polly’s Fine Jewelry Co-Owner Richard Moore Dies at 69Moore, Polly’s husband, is remembered as a family man with an easygoing spirit and a love for sports and the outdoors.
Events & AwardsAug 11, 2026
NAJA Announces Lineup For 2026 Fall Virtual ConferenceThe mid-year conference for jewelry and watch appraisers will take place Sept. 5-6 on Zoom.
TechnologyAug 10, 2026
Colorado Jeweler Launches Customization Tool He Built HimselfHonest Hands Ring Co. Founder Benjamin Bosworth shared his thoughts on jewelry technology and why AI can never replace the human element.
