Editors

Middle class problems

EditorsJun 11, 2015

Middle class problems

Whether it’s coincidence or kismet, as soon as I slated this post for Friday’s newsletter, I began reading stories addressing the issue that’s been on my mind for some time: the shrinking of the middle class.


On Monday, Bloomberg published a story quoting Johann Rupert, the executive chairman of Richemont (Cartier, Van Cleef, Jaeger-LeCoultre, etc.) who regularly ranks among the world’s billionaires.

In a speech at a luxury summit in Monaco, Rupert listed the erosion of the middle class, and his belief that it will have negative effects on the sale of luxury goods because those who are wealthy won’t want to flaunt it, as one of the issues that keeps him up at night.

“How is society going to cope with structural unemployment and the envy, hatred and the social warfare?” he said, according to Bloomberg. “We are destroying the middle classes at this stage and it will affect us. It’s unfair.”

The story quoting Rupert came just one day after The Daily Beast published a column stating that the malls that are thriving are those that cater to the wealthiest consumers.

Mr. Rupert, I agree. The decline of the quality of life for members of the middle class concerns me not just because my job is in the fine jewelry industry, but because I am member of the middle class.

I grew up outside of Pittsburgh, in a sea of small run-down mill towns that have been in decline since the 1970s and which society long ago stopped caring about; no hipsters, breweries or shops selling $30 jars of organic mayonnaise there. It’s the just the same buildings that have been decaying since I was a kid in the 1980s.

Still, I was part of the middle class. My father worked a plant owned by Ashland that mixed and packaged oil for Valvoline. Thanks to the fact that that plant was unionized he made, as we say where I grew up, “good money.” But, he always reminded us, we were lucky. Ashland had another packaging plant in Cincinnati that wasn’t unionized, and the men there earned half of what my dad did per hour. My mother was a schoolteacher and, eventually, made “good money” too.

My parents were both able to retire early and today, still have their house in Pennsylvania and a second home in Florida where they escape to for the months of January through May. Good for them. They both deserve it.

Unfortunately, however, I think this type of life is available for fewer and fewer Americans today, and I am not alone.

A story published by USA Today on Tuesday
cited a recent study by Bank of America and Merrill Edge stating that some 74 percent of Generation Xers (my generation) and 67 percent of millennials are concerned about having enough money saved for retirement, even though members of both generations are years away from afternoons on the golf course.

Among the subjects on my/their mind: rising health care costs, hefty student loans and realization that many of us will live well into our 90s.

These days, concerns among members of the fine jewelry industry include selling to the “super rich,” there not being any generic advertising for jewelry (which is beginning to change) and how to talk to the millennial consumers.

I agree these are all issues, but they don’t tell the whole story.

You can go after the same 1 percent as everyone else, if you want, and you can master the art of social media in an effort to snag every millennial customer out there.

But here’s the bottom line: There’s a lot of people who just don’t have the money to spend on jewelry like they used to have. Many families find that by the time they are finished paying the bills and putting a little bit aside, there’s not much left.

It’s sad but it’s reality.

Another interesting point from Rupert’s speech was his assertion that, “We’re in for a huge change in society.”

That change, in my mind, already has begun. Jewelers need to change with it. This includes being willing to stock lower-priced, and higher-margin, silver and/or fashion lines alongside traditional fine jewelry that’s priced in the thousands.

Sell to the 1 percent in your town, yes, but also have something for  the millennial consumer who’s strapped for cash and saddled by college debt, or that consumer in their mid-30s, who is not assured the same bright future as her parents.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Bonhams New Bond Street London flagship
AuctionsOct 24, 2025
Bonhams Under New Ownership, Top Executives Replaced

London-based investment firm Pemberton Asset Management acquired the auction house for an undisclosed amount.

De Beers Diamond View Zoom machine with monitor
GradingOct 24, 2025
DMIA to Hold Diamond Testing Instrument Demo

The workshop will give attendees the chance to try out and ask questions about three different diamond verification instruments.

Two brooches stolen in the October 2025 heist at the Louvre Museum in Paris
CrimeOct 24, 2025
Video Emerges of Louvre Jewelry Robbers Fleeing the Scene

The footage shows two of the jewelry heist suspects descending from the second floor of the museum and then escaping via scooter.

BTYB10.25_Header.jpg
Brought to you by
Are Earrings an Overlooked Category? What Retailers Need to Know Now

As the holiday season quickly approaches, consider stocking one category that sometimes gets overlooked: earrings.

Wyld Box Jewelry Ray of Light Large Drop Earrings
CollectionsOct 24, 2025
Piece of the Week: Wyld Box Jewelry’s ‘Ray of Light’ Earrings

Founder and designer Rosanna Fiedler looked to a vintage Cartier clutch when designing the sunlight-inspired drop earrings.

Weekly QuizOct 16, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Tiffany & Co. Bird on a Rock pendant
FinancialsOct 23, 2025
Jewelry Sales Resilient Despite Struggles at LVMH, Kering

The luxury conglomerates faced a challenging Q3 amid geopolitical and economic tensions.

Cullinan Diamond Mine plant
SourcingOct 23, 2025
Petra Diamonds Turns to Shareholders to Raise Capital

The struggling diamond mining company, which owns the historic Cullinan mine, has launched a rights issue to raise about $25 million.

LIM-401 2024 National Jeweler Supplier Bulletin- iD100 Web and Eblast FINAL (2) (1).jpg
Brought to you by
Protect Your Customers and Your Business

You deserve to know what you are selling–to protect your customers as well as your business and your reputation.

Million Dollar Hip Hop Watches by Leon Schäfers, Jeanette Lang, Tobias Kargoll
WatchesOct 23, 2025
‘Million Dollar Hip Hop Watches’ Recounts Watch History

The book details the journey of watches as symbols of hard-earned success in hip-hop for artists like 2Pac, Jay-Z, and more.

Alexis Vourvoulis
AuctionsOct 23, 2025
Freeman’s | Hindman Names New VP, Senior Specialist for Jewelry & Watches

Alexis Vourvoulis, who most recently worked at Tiffany & Co., brings more than two decades of jewelry experience to her new role.

Taylor Swift engagement ring Greenwich St
TrendsOct 22, 2025
The Taylor Swift Effect: Antique Diamonds Edition

The superstar’s August engagement put the stamp of approval on an already hot engagement ring trend.

Rahaminov Diamonds Emerald-Cut Diamond Bracelet
TrendsOct 22, 2025
Don’t Forget These Diamond Jewelry Trends When Stocking for the Holidays

Retailers should offer classic styles with a twist that are a perfect fit for layered looks, experts say.

Fancy vivid purplish pink diamond
AuctionsOct 22, 2025
Pink Diamond, Vanderbilt Jewels to Headline Phillips’ Geneva Auction

The nearly 7-carat fancy vivid purplish pink diamond could sell for around $9 million.

“Storied Diamond Desert Sands of Eternity” engagement ring and wedding band
SourcingOct 22, 2025
In ‘Storied Diamond,’ Jared Jewelers Is Emphasizing the Journey

The retailer’s new collection of engagement rings and fashion jewelry is set with natural diamonds that are traceable via blockchain.

Tiffany & Co. Bird on a Rock by Tiffany High Jewelry Lariat
CollectionsOct 22, 2025
Tiffany & Co.’s ‘Bird on a Rock’ Finds New Perch

Chief Artistic Officer Nathalie Verdeille has reimagined the iconic design in both figurative and abstract creations.

Jewelers for Children Halloween contest
Events & AwardsOct 22, 2025
JFC Kicks Off Halloween Costume Challenge

Five dollars buys one vote toward an industry professional you want to see dressed up as a hero, or a villain, this Halloween.

Hillsborough show
Events & AwardsOct 22, 2025
Hillsborough Antique Show Gets New Owner

Recently acquired by KIL Promotions, the November edition of the public show in San Mateo, California, will be held Nov. 7-9.

Bicolor pink and colorless diamond
GradingOct 21, 2025
GIA Examines Rare Bicolor Pink Diamond

The stone’s two zones, one pink and one colorless, may have formed at two different times, the lab said.

Pomellato Rodeo Drive Flagship Exterior
MajorsOct 21, 2025
Pomellato Brings ‘Global Attitude’ to Rodeo Drive Flagship

Hollywood glamour meets Milanese sophistication in the design of Pomellato’s new store in Beverly Hills, California.

Grown Brilliance NYC Flagship Exterior
Lab-GrownOct 21, 2025
Grown Brilliance Opens First Flagship

The New York City store showcases a chandelier with 1,500 carats of lab-grown diamonds designed by an FIT student.

Douriean Fletcher Messenger Collection
Events & AwardsOct 21, 2025
‘Douriean Fletcher: Jewelry of the Afrofuture’ Opens at MAD

The Museum of Arts and Design's new exhibition features 75 pieces by the designer, best known for her work in the “Black Panther” films.

Sothebys the glowing rose pink diamond
AuctionsOct 20, 2025
Sotheby's To Auction 10-Carat Vivid Pink Diamond

Making its auction debut, "The Glowing Rose" is expected to fetch $20 million at the November jewelry sale in Geneva.

2025_Gemfields logo.jpg
SourcingOct 20, 2025
2 Mozambique Police Officers Killed at Gemfields’ Ruby Mine

They were attacked on Oct. 15, as approximately 40 miners without licenses marched on the mine’s gate.

Empress Eugénie’s pearl and diamond tiara
CrimeOct 20, 2025
See the ‘Priceless’ Jewels Stolen During Daytime Heist at the Louvre

It took the masked thieves less than 10 minutes to steal eight irreplaceable jewels from two display cases in the museum’s Apollo Gallery.

Lauren Gayda
SourcingOct 20, 2025
Pristine Gems Names New Director of European Sales

Gemologist Lauren Gayda has previously worked at The Clear Cut, Taylor & Hart, and Effy Jewelry.

Charles London, Mayer and Fran Udell, Mark and Candy Udell
IndependentsOct 17, 2025
From the Jazz Age to the Information Age: London Jewelers Turns 100

In 2026, the jewelry retailer will celebrate a milestone only a small percentage of family-owned businesses survive to see.

The Edit – A Gallery of Italian Jewelry Masterpieces Graphic
Events & AwardsOct 17, 2025
An Edit of Italian Jewels Is Coming to NYC

The new showcase dedicated to Italian jewelry design is set for Oct. 29-30.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy