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
AuctionsDec 12, 2025
13.54-Carat Paraíba Tourmaline Sets Records at Christie’sSet in a Tiffany & Co. necklace, it sold for $4.2 million, the highest price and price per carat paid for a Paraíba tourmaline at auction.
MajorsDec 12, 2025
David Webb Reveals Ice-Cold Holiday Window DisplayThe jeweler’s “Deep Freeze” display showcases its iconic jewelry designs frozen in a vintage icebox.
CollectionsDec 12, 2025
Piece of the Week: Oscar Heyman’s Sphene RingTake luxury gifting to new heights this holiday season with the jeweler’s showstopping 12-carat sphene ring.
Brought to you by
Impacting Tomorrow TodayHow Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.
Events & AwardsDec 12, 2025
IGI Jewelry Design Contest Now Accepting SubmissionsThis year's theme is “Unveiling the Depths of the Ocean.”
Weekly QuizDec 11, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
TrendsDec 11, 2025
Pinterest 2026 Trend Report: Brooches, Bold Gold, Cool BlueIn its annual report, Pinterest noted an increase in searches for brooches, heirloom jewelry, and ‘80s luxury.
GradingDec 11, 2025
GIA to Offer Origin Determination for 3 More GemstonesStarting Jan. 1, customers can request the service for opal, peridot, and demantoid garnet.
Brought to you by
Roseco Releases New Full-Line CatalogRoseco’s 704-page catalog showcases new lab-grown diamonds, findings, tools & more—available in print or interactive digital editions.
IndependentsDec 11, 2025
Look Inside Day’s Jewelers’ Ninth StoreThe 111-year-old retailer celebrated the opening of its new location in Salem, New Hampshire, which is its third store in the state.
MajorsDec 11, 2025
Americas Gold Releases New Gold Chain CatalogThe new catalog features its most popular chains as well as new styles.
AuctionsDec 10, 2025
Francis Ford Coppola’s Watch Sells for $10.8MThe filmmaker’s personal F.P. Journe “FFC” prototype was the star of Phillips’ recent record-setting watch auction in New York.
WatchesDec 10, 2025
There’s A New Rolex Boutique in MiamiThe new location in the Design District pays homage to Miami’s Art Deco heritage and its connection to the ocean.
SurveysDec 10, 2025
Consumer Confidence Drops in November Inflations, tariffs, and politics—including the government shutdown—were among consumers’ top concerns last month.
SourcingDec 10, 2025
NAJA Announces Details for 2026 ‘Ace It’ Winter Conference“Longtime favorite” presenters, as well as first-time speakers, will lead talks and workshops at the annual event in Tucson next year.
Events & AwardsDec 10, 2025
MJSA Names 2025 Responsible Design Challenge WinnerSilas Smith of Meridian Metalworks won the challenge with his pendant that blends Australian and American landscapes.
AuctionsDec 09, 2025
‘Desert Rose’ Diamond Sells for $8.8M in Abu DhabiThe sale of the 31.68-carat, sunset-hued stone was part of Sotheby’s first series of events and auctions in Abu Dhabi.
TrendsDec 09, 2025
‘Once Upon a Time,’ Guzema Debuted Its Holiday CollectionThe collection features characters and motifs from Ukrainian folklore, including an enchanted mirror and a magic egg.
TechnologyDec 09, 2025
Gemvision Releases Updated MatrixGoldMatrixGold 3.11, the newest version of the jewelry design program, offers more flexibility, precision, and creative control.
Events & AwardsDec 09, 2025
MJSA Showcase Pavilion Returning to JA New York The pavilion will be part of the 2026 JA New York Spring show, scheduled for March 15 to 17.
MajorsDec 08, 2025
Juell Kadet, a ‘Lifelong Pillar’ of Rogers & Hollands, Dies at 96Kadet, a 1994 National Jeweler Retailer Hall of Fame inductee, helped grow the family-owned retailer in the Chicago area and beyond.
TechnologyDec 08, 2025
You’ve Heard of Smart Watches and Rings; Meet Smart EarringsBilled as the world’s smallest wearable, Lumia Health’s new smart earrings have a health tracker subtly embedded in the back.
TrendsDec 08, 2025
Amanda’s Style File: Celebrating December’s BirthstonesDon’t let those with December birthdays feel blue. Help them celebrate their month with blue zircon, turquoise, and tanzanite.
CollectionsDec 05, 2025
Piece of the Week: Robinson Pelham’s ‘Tsar Star’ EarringsThe new pink sapphire version of the piece dances with its wearer in the brand’s “Icons After Dark” holiday campaign.
TrendsDec 05, 2025
Pantone’s Color of the Year for 2026 Is … WhiteA choice that’s generated a lot of commentary, Pantone says “Cloud Dancer” marks a fresh start and encourages relaxation and creativity.
MajorsDec 05, 2025
Stuller Releases ‘Wrapped in Wonder’ CampaignThe manufacturer’s holiday campaign features a gift guide filled with trending designs and jewelry that can be personalized.
CrimeDec 04, 2025
Man Arrested After Allegedly Swallowing Fabergé Egg PendantThe man was charged with theft, accused of ingesting the necklace while in a jewelry store in Auckland, New Zealand.
IndependentsDec 04, 2025
Step Inside JR Dunn Jewelers’ Giant New Store The Florida independent expanded its store from 8,000 to 14,000 square feet, fulfilling the vision of its late co-founder, Jim Dunn.
