Towards the end of last month, the price of gold hit a new high of over $1,260 an ounce. I was going to explain the economic and political reasons for the increase and examine its implications but I had a vision of y’all searching your Poodle Reader for something more interesting … maybe the blog of a 20-something “effortlessly chic” fashionista. I imagined you admiring the 10 photos she’s posted of a single outfit composed of the shortest of short shorts, the highest of high heels and a side-boob-revealing tank top. In this outfit, she’s crouching artistically in a windswept parking lot, pouting into the adoring lens of her almost-professional-photographer boyfriend. I saw her beauty turning you into jellus h8er who leaves her a nasty anonymous comment telling her she’s fat, anorexic or skinny-fat.
Well! I certainly don’t want you lashing out like that, so I’m just going to give you some quick and easy insight into what the high price of gold means. It means that 16 inches of heavy 18K gold chain that I bought wholesale for $255 in 2006 and $444 in 2008 now costs $530 (excluding clasp). That’s up 19% in the past two years and more than double the 2006 price.
Taking a bite out of $530.
I’ve educated you about costs before, so you should know that for me to make enough money to stay in business, I must at least double my cost when selling to a store. For the store to stay in business, it needs to at least double its cost. That means that 16 inches of chain alone is worth $2,120 at retail — and that’s still excluding not only the cost of the clasp, but the cost of the pendant, the packaging, the photography, the time I’ve spent writing this educational post, and so on.
I (like many other jewelers I know) have barely raised the prices on my older gold designs. It’s hard to pass along such big increases to the customers during tough economic times. But I’m finally going through my website to increase prices on most of my gold jewelry designs by about 10% — even though the cost of parts has gone up much more. In other words, my jewelry is a total steal, especially pre-price adjustment. Buy some and you’ll look beautiful and thrifty. And, hey, if gold goes up past $2,000 an ounce like some people predict, you can melt down the jewelry and make a nice little profit. You can’t do that with Nicholas Kirkwood for Rodarte heels! So start gathering the spare change out of your sofa cushions, your kid’s piggybank and/or your mother’s purse and come back tomorrow when, for 24 hours only, I will have one fabulous gold piece on sale for half off the 2008 price. The price is criminal … it’s insane … it’s criminally insane! Arkham Asylum, here I come.
UPDATED TO ADD: What timing! Early in the trading day, gold has dipped below $1,200 an ounce for the first time since May. That doesn’t mean I’m not going to raise prices as planned. Gold would have to fall below $800 an ounce for my current prices to reflect my costs. So why is gold lower today? It’s obvious: I was taking some scrap metal to be sold today. Of course gold is lower the day I’m selling instead of buying. I’m going to take credit for this whole thing.
They’re coming to take you away, ha-ha, they’re coming to take you away, ho-ho, ha-ha, he-he, to the funny farm, where all the gold is beautiful and something’s gonna get BROKEN!!!! *ducks as Trent Reznor throws his guitar at her*
I can imagine Irwin in the background yelling “you’re killing me, Wendy!”
Ok, maybe that’s only a SoCal thing and no one else will get it, but trust me, it’s fitting.
Always difficult to find the right balance, but I think if people love your designs (I do and only wish I had more money, I have already done the kids’ piggy boxes, the back of the sofa and the empty lockers at the gym) they will buy them. They buy designer clothes which cost significantly more than the raw materials. I will be definitely be checking out you insane price tomorrow though!
wow that is crazy! at my dads old job he used to find broken jewelry and single gold earrings women would lose. He sold it all at once and made about $400 two years ago…Im pretty sure he could have gotten more. One of those sand searching things isnt sounding too bad right now
LOL Your urban word usage amuses me!
Seriously with the ten hi-res nearly identical photos of one outfit… Gawd! Those bitches are always clogging up my computer memory.
Art Bell was really right about investing in gold, apparently. Maybe you should start a cash-for-gold side business? x
Your first paragraph is genius.
BTW, I show your Marie Antoinette ring to my husband everyday. I am thinking next year, I am going to start leaving print outs on his desk.
I like your style, lady!
So even though the price of gold is through the roof, you’re having a fire sale tomorrow? What does our friend Alyssa think about that? LOL! Can’t wait to see what the item is!
Yep! Can’t afford to make new designs when old designs are hanging around. Need some cash to do a major new look!
Hi gorgeous!
Love your T-Bags dress, and naturally all your gold jewelry too!
xoxox,
CC
P.S. So jealous that you have the J Brand Houlihans!
Your picture makes me think of Rafa Nadal. Did you see him taking a bite out of the Wimbledon trophy? Adorable( both of you;-).
This Christmas, I’m just going to send B a link to your shop… 😉
Ahahah. I totally need more deets on the 1st paragraph. You know how I loves some haterade.
We need to do cocktails, it’s been way too long.When?!?!
I wish you had done a breakdown of the political/economic reasons for the rise in price! I love that stuff!
Just popping in to say hi, hope you are well and I love your gold jewelry : ) xx
Your wit is as fab as your jewelry! Brilliant post.
♥ V
http://www.gritandglamour.com
No please do tell me about gold prices etc. You know I never look at the young ‘uns and think evil or jealous thoughts, I think why aren’t they saving their money for some fab jewellery!
lol I totally enjoyed reading that about gold. I must confess I don’t necessarily keep track of the prices when I pick up my paper.
I think you’re amazing and I hope this economy fixes itself up so we can spend more money on items we enjoy again.
P.S your first paragraph had me cracking up
wow. i had no idea it was so complicated. do you find that you have a significant drop in sales when gold prices go up like this? just curious.
now that i’m making more bank, maybe i can splurge on a wb piece! 🙂
Because of you, I will try to limit my side boob and keep my posts at 6 pictures per outfit…
In other news, I love reading your straight shooting about pricing… on a total minor scale, I make dresses and I always want to tell people to read your posts about how much time these things take and why prices reflect that. No, we can’t price like F21…
Show us some under-boob then!
Feel free to use my posts whenever you need to explain pricing. We all face the same issues whether we’re in jewelry, clothing, photography, software, hairstyling, etc etc!
I always appreciate these educational posts. I have lost touch with how much things cost in the jewelry industry, even if I haven’t lost touch with the VALUE of jewelry and the materials and processes required to make it.
i love reading your educational posts! and dont you worry, i’mma save up for a wendyb piece and tell anyone who comments it’s an investment!
I’ve been a proponent of gold as an investment for years! Also, as a designer the new highs are killing me, but your customers are definitely getting a steal.