Last updateTue, 13 Feb 2018 11pm

Chuck Koehler

The Retailer’s Perspective: When the gold goes tumbling down!

I, for one, will be THRILLED!  I know a lot of you out there will be devastated, maybe even driven out of business if gold tanks, so let’s talk about it.

In 1978, I was a 17 year old junior in high school and stumbled into a job at Best Products in Dallas, TX working in their jewelry warehouse.  That was 35 years ago.  I’m not an economist, I’m not a market analyst, and I’m no expert on money (just ask my banker), but I have been around this gold and silver thing for the better part of 5 different decades so here are my observations.

For starters, I’ve always wished that we could somehow separate the gold and silver we use in the jewelry industry from the gold and silver that doomsday preppers use to hedge their bets against an “all out global economic meltdown.”  The old “nothing beats gold when the system breaks down and anarchy rules” state-of-mind has been alive and well in the world for the last 5 or 6 years.  And, if you were a financial advisor in 2008 watching the stock markets crashing, and the gold markets soaring, you’d have been a fool not to jump on the bandwagon… even though it practically wrecked the jewelry industry.

Simple case in point: 14K solder was $13 a pennyweight for the better part of 30 years.  When I was making a parts order, and I needed solder, I’d order an extra one or two just to have in stock.  Okay, it was really because I misplace that stuff all the time and I didn’t want to spend an hour looking for it.  I could just grab a new one until I stumbled across the old one. 

Well guess what, I haven’t ordered an extra dwt of solder in several years.  I’ve only ordered what I actually need.  What used to cost $26 (2 dwts of solder) now costs $116.  I’d rather spend my time looking for the one I lost than spend my money on something I don’t really need at $1,700 an ounce.  And, if you’re in the business of selling solder, this sucks!

Somewhere around the late ‘70s and the early ‘80s gold spiked to close to $1,000 an ounce, but it was really short lived.  I was 19 years old at the time and don’t really remember what the fallout was for those that were sitting on tons of expensive gold when it dropped back to pre-spike prices.  But, this is the year 2013 and gold has already dropped more per ounce this year than it cost per ounce the last 30 years.  That being said, look out, something’s about to bounce - and I think it’s gold, bouncing down.

Back in 2008, when gold shot up to $1,000 an ounce, I interviewed several store owners about how they were handling the spike.  I thought I’d call those people again and get their take on the current gold situation.

Bill Sites, at Ward-Potts Jewelers had this to say: “I’m not really doing anything different.  I don’t feel that gold is ever going to go back to $500 an ounce.  My customers know that gold is very expensive right now, and the fluctuations in the market are just that, fluctuations.”

I asked Bill how he was planning his future inventory purchases: “Vendors and suppliers used to offer us the option of locking in the price at order placement or order shipment.  I think that is probably going to come back around as a viable business practice in the near future.”

Huh.  I’d completely forgotten about that.

Lisa Morehead, of Masman Jewelers had this to say: “We buy a lot of gold off the street and I have several customers that have been holding out on selling large quantities.  I’m calling those customers now and telling them that this might be the time to get rid of it.” 

Lisa did say that several of them have asked, “Are you still willing to give me what you quoted me last year?”  


When asked about buying inventory, Lisa said that she is not purchasing heavily right now, just mostly filling in because she feels that gold is going to continue to trend down.

Scott Isaacs of Belle Meade Jewelry thinks that this is just a temporary low in the gold market.  “Honestly, I’m enjoying the discount at the moment,” he told me.  He thinks that gold is going to go back up.

Allison Cianciulli, of Selig’s Jewelers, pointed out to me that her store has been leaning heavily towards higher end sterling silver jewelry lines over gold jewelry lines.  Allison also pointed out that the few times she’s had customers request heavy gold byzantine or woven style necklaces or bracelets, her suppliers are no longer carrying these items in their inventory.

I guess the suppliers don’t want to get caught holding the bag either.

Wayne Clark of EJ Sain Jewelers had this to say: “It’s just not something that we think about anymore.  I think it’s going to go below $1,000, eventually, but not anytime soon, so we just don’t let it factor in to our decisions.  We’ve got our jeweler back there making jewelry every day, and when he needs gold, we buy him gold.”

I called my trusty coin dealer down the street and asked him if a Joe Blow comes in off the street wanting to buy gold coins, what would he do?  Without hesitation, he said, “I’d tell him I was out of them.  If it was a long time good customer, I might sell them one or two coins, but I wouldn’t let them clean me out.  I want them taking up space in my vault right now.”

So kids, what have we learned today?  I’ll tell you what we learned…. nothing.  But, if you’ve been reading my column long enough, you’ve probably come to expect that, haven’t you? 

Honestly though, what it boils down to is this - gold is going to do what gold is going to do, and there’s not a damned thing we can do about it.  I talked to a lot of jewelry store owners and all of them had an opinion about what the future holds, and every opinion was different. 

Personally, I’m on the “gold is gonna drop like a hot potato so I’m only going to hold on to what I need to get by” bandwagon.

Who thinks I’m wrong?  Feel free to write me and let me know what you think the future holds.

Chuck is the owner of Anthony Jewelers in Nashville, TN. Chuck also owns CMK Co., a wholesale trade shop that specializes in custom jewelry and repair services to the jewelry industry nationwide.

If you would like to contact Chuck or need a speaker or instructor for your next conference/event he can be reached at 615-354-6361, www.CMKcompany.com or send e-mail to This email address is being protected from spambots. You need JavaScript enabled to view it..">This email address is being protected from spambots. You need JavaScript enabled to view it..

The Retailer’s Perspective: This is harder than it looks!

About 12 years ago, in another life, I lived in an area of Nashville called Belle Meade.  Belle Meade was just nominated as the best place in the United States to retire if you are rich (like I said, it was another life).  While I lived there, I had, hands down, the nicest lawn in Belle Meade.  And this was a city where the residents bought and paid for the best lawn care available - and I still kicked every one of their butts.  How did I do it?  It went something like this…

The Retailer’s Perspective: I hate it when that happens...

As I’m struggling with this whole Internet thing, I asked my readers for input on my websites and what I’m doing wrong in regards to them.  Well, apparently I’m doing everything wrong!  But, I’m bound and determined to get this thing right which is why I asked for input. 

I’m adamant that 100% of the websites be built in-house so as to retain control of how long it takes content to be posted on or deleted from my websites.  I don’t want to wait 5 days for my computer geek dude to get around to calling me back only to tell me it’s going to be three weeks before he can even think about my problem.  I’m a fix-it guy and I want to fix it or update it on MY schedule, not his.  So below are excerpts and comments that I received about what I’m doing wrong… and what you’re probably doing wrong as well!  Reader feedback and comments are in italics and edited for publishing reasons, but I think you’ll get the point.

So Chuck, why do you even have a website? In other words, what is its purpose?

You have a successful brick and mortar store and need one so you’re not left behind by everyone else (not a very good reason), or I wanted one for when someone “Googles” my store’s name (slightly better reason) or I wanted a website to be an extension of my store’s operation, perhaps to make some sales and enhance my business (much better reason) or I wanted to become a real player in the e-commerce, niche market space where I want to operate (the best reason). 

For the record, I need a little bit of all of the above, but it’s the last one that I’m really interested in!

Informational websites abound all over the Internet!  We’ve all seen them and been disappointed. We went to a company’s website and found it was nothing of real substance aside from the usual who, what, when, where and why of the company.  It had some founding history, mission statement, contact information, Google map directions and store hours. It was flashy, slick and using the latest trends in websites such as rotating images, splash screens, embedded videos and all the bells & whistles you could imagine. Very creative!

Unfortunately we have to contact them during business hours to be able to ask any questions, inquire about products or conduct any business.  Oh well, time to move on to a competitor most likely. If an informational website is what you have, that’s pretty much the response you’re likely to get from most customers that come to your website outside of your normal business hours looking for solutions to problems, answers to questions, or products and services to buy.

There are many good, free webhost providers out there. You mentioned Weebly.com as the one you used to develop and host your site. They do seem to have all the necessary components to develop an attractive informational website with a number of professional templates to choose from, with one glaring exception…an e-commerce solution!! Now we’re talking a full shopping cart system and not just some PayPal ‘Buy Now’ buttons.

Oops, this is where I goofed because my entire umbrella of websites are built on the Weebly platform.  I really like Weebly, but if it doesn’t do e-commerce, then I’m starting over.  I want to do e-commerce and I guess I didn’t really understand the full blown shopping cart system when I started.  I hate it when that happens!

E-commerce websites abound all over the Internet, too!!  If you’re serious about making money from a website and not just spending money on a website, then an e-commerce solution is what you need.

Unfortunately, not all e-commerce websites are equal. The most successful one’s (Amazon.com, eBay, Overstock.com, etc.) all spend a great deal of time, money and resources to create the near perfect online shopping. Well, you might never get to be another Amazon.com but you are in the same cyberspace as they are, so why not? We can all probably remember when they didn’t even exist! Everyone has to start out from the bottom and work their way up. The two most important virtues in the e-commerce cyberspace universe are patience and perseverance.

Realistically, most e-commerce websites are not successful because of many factors. Most suffer from little or low traffic flow. Generally, this is because of poor organic search engine listing and/or no pay-per-click advertising. It takes a combination of both of these to be successful in cyberspace.

A reader asked me who was bigger, my company or Amazon.com?  Of course I said Amazon.  Then they pointed out that on a computer screen we’re the exact same size.  So I’ve as good a shot at making a sale as they do in cyberspace.  And ‘pay-per-click’ came up over and over and over again.  I don’t really understand it yet, but give me a month or so and I’m gonna be pay-per-clicking with the best of them.

You don’t have to be Amazon.com to be successful. Success can be measured in many different ways (review your purpose for having a website again), but an e-commerce website is successful when it fulfills the purpose for its existence which generally means it offers customers products and/or services they want or need with a variety of payment and shipping options from which to choose so you can accept sales online and make money. A well designed and effective e-commerce website should function with little customer/company interaction which means you have to anticipate your customers questions and/or concerns and address them with large, clear images, detailed descriptions of products or services and customer service information (such as contact, warranty and return info, etc.).

Remember, an e-commerce website is 24/7. Unlike your brick & mortar store where you can turn out the lights, lock-up and go home at the end of the day, an e-commerce website never closes so it must project whatever image and deliver whatever experience you want customers to have. Since an e-commerce website is always open it better be rock solid and bullet proof!

Well, I’ve come to the conclusion that I need a mixed bag of websites.  I’ve got a couple that are nothing more than ‘I’m right here… call me’.  But I have two different companies that I set up to be fully online entities.  So, I’m not starting completely from scratch, but I am stepping back and punting on two websites and switching to a different hosting platform that’s designed to be a full blown e-commerce site.

I got into this business decades before the Internet was even thought of, and it’s just something that doesn’t come naturally to me.  I can use the Internet with the best of them, but running an Internet store is a whole nuther animal.  Oh, and have I ever mentioned how much I hate learning new things? 

Oh well, wish me luck and I’ll keep you posted as I struggle to get a handle on this thing that didn’t exist when I got into this business, but I’m gonna kick it’s butt before it kicks mine.

Chuck is the owner of Anthony Jewelers in Nashville, TN. Chuck also owns CMK Co., a wholesale trade shop that specializes in custom jewelry and repair services to the jewelry industry nationwide.

If you would like to contact Chuck or need a speaker or instructor for your next conference/event he can be reached at 615-354-6361, www.CMKcompany.com or send e-mail to This email address is being protected from spambots. You need JavaScript enabled to view it..">This email address is being protected from spambots. You need JavaScript enabled to view it..


The Retailer’s Perspective - You were warned!

I know a lot of business owners will disagree with me, but I don’t want everyone that walks through my front door or calls me on the phone to be my customer.  And, I don’t agree with that age old saying, “The customer is always right.”  I’ve been doing this jewelry thing for 35 years. I’d like to think I know a little more about it than my customers and I’m always right.  But, what do you do about the troublemakers?

The Retailer’s Perspective: The other side of the Internet

Last January I made the decision that 2012 was gonna be the year that I got on the internet bandwagon and stayed there.  Well, I got on the bandwagon, and I stayed there, but was it worth it?  Yes.  But, it’s still a tangled web to unweave.

In this day and age, the internet is just a necessary evil that all business owners have to live with on a day to day basis - whether we want to or not.  Over the course of the last year, I’ve become quite the website snob.  I see so many companies with websites that are horrible.  Either the writing is bad, the photos are crap, or they are so hard to navigate that I just move on to a competitor, swearing I’ll never let my websites get like that.

The Retailer’s Perspective: So, that was Christmas

Last month I wrote about some of the craziness that was going to be brought into your store over the Christmas season - and I wasn’t talking about the good kind of craziness.  But, because of publishing deadlines, that column was simply a prediction based on the number of Christmas’s that I’ve been in this industry.  And, judging from the number of calls and e-mails I’ve received, I was spot on.  Well, that got me to thinking about all of the craziness that’s going to be coming your way after Christmas, because I’ve been through a few of those as well.  I think it’s going to go something like this…

The Retailer’s Perspective: It’s the Crazy... I mean the Christmas Season

Well, well, well, here we are once again at the most important time of the year for the jewelry industry.  That time of the year that brings out the best of the crazy in people.  That time of the year when normal people decide to show their craziness right out in the open... usually in my store.  Since this will be my 35th Christmas season as a jeweler, I’ve seen some of the funniest, craziest, and stupidest things you can imagine.  But, it seems, every year the following happens...