Gold Suffers Biggest Weekly Drop Since 1983 — Here’s How Jewelers Are Responding

Last week’s historic gold price plunge has yet to materially affect most independent jewelers — but, according to a “Quick Hit” Brain Squad survey of INSTORE readers, those on the front lines of buying and selling the precious metal are feeling the squeeze, and some are moving fast to turn the downturn to their advantage.

In a survey conducted Tuesday, we asked jewelers how they were responding to gold’s biggest weekly decline since 1983. The metal shed more than 10% as the U.S.-Israel military conflict with Iran pushed oil prices higher, reignited inflation fears and derailed expectations for interest-rate cuts. As of yesterday, gold had stabilized close to a four-month low, at around $4,600 an ounce.

Two-thirds of respondents reported they had yet to be seriously impacted, while the remainder were evenly split between those who said they had been negatively or positively affected.

Reactions among store owners who are feeling the impact break in two directions. Several report real opportunity. Denise Oros of Linnea Jewelers in La Grange, IL, said she used the pullback to restock chain inventory she had deliberately drawn down while prices were elevated. “This correction brings relief not only from a cost standpoint, but also restores confidence in pricing consistency for both the retailer and the customer,” she said. Dianna Rae High of Dianna Rae Jewelry in Lafayette, LA, reported a more immediate payoff: custom projects that stalled at peak prices are now moving forward. “Clients that chose to hold on their project when gold was high are now giving us their go-aheads,” she said.

Other jewelers are absorbing margin pain. Bill Elliott of Ross Elliott Jewelers in Terre Haute, IN, said falling prices have squeezed returns on unrefined scrap he had already purchased. “The combination of higher gold prices and tariffs has been challenging in figuring out replacement costs,” he said. Several retailers said they had responded by lowering the percentage they pay customers for gold trade-ins.

On repricing finished inventory, owners are divided. Tim Wright of Simply Unique Jewelry Designs in Yorktown, VA, is now pricing karat gold items by weight — a system he adopted after adjusting tags three times in the past six months. Others are holding steady. “If we did [reprice constantly], we would need a team of employees just to repeatedly reprice,” said James Sickinger of Sickinger’s Jewelry in Lowell, IN.

Most respondents expect gold to rebound and are counseling patience. “Gold will always sell no matter the price,” said Joe Thacker of Thacker Jewelry in Lubbock, TX. “Don’t overreact.”

INSTORE’s Quick Hit Brain Squad survey — a new survey group INSTORE has created to generate real-time reactions from jewelers to breaking issues — was sent out Tuesday morning and completed by 31 jewelers.