Has Technology Killed the Jewelry Industry?

http://www.psmag.com/nature-and-technology/tech-killed-jewelry-industry-97335

by diodorus • 11 years ago

46 57 11 years ago

wallflower• 11 years ago

I know a couple people who work in the jewelry industry. More modern jewelry shops have teams of designers who work in 3D modeling software (the dongle-required class) all day to produce ring designs. Some designs are produced white-label for larger, more well-known "brand name" jewelry retail chains. It is better to say that technology has changed the jewelry industry, like every industry.

That being said, in the Diamond District in NYC, multi-million dollar transactions are done informally with verbal contracts. Some things never will change.

adamnemecek• 11 years ago

The article is more about the consumer side than the producer side of the jewelry industry.

jedberg2• 11 years ago

I assumed this would be an article about there being a much more even playing field wrt information about pricing.

Back in the day, if you wanted a diamond, you went to one of a few local jewelers and that was your choice. Now you can order from the internet.

However, unlike most other industries disrupted by internet information sharing, a jewelers entire business model was predicated on them knowing more than you, which is now lost.

However, the article makes a good point. All the millennials I know care a lot more about their phones than their rings and earrings.

wtbob• 11 years ago

However, the article makes a good point. All the millennials I know care a lot more about their phones than their rings and earrings.

Which is a little funny, since after the initial drop in value I bet a decent jewel beats a phone after, say, 4 years.

mod• 11 years ago

I don't think it's funny at all. They're not attached to it because of its monetary value, but rather its functional value.

Who cares what it's worth in 4 years?

jedberg2• 11 years ago

Have you ever tried to sell a used diamond? :)

Their value drops precipitously. Probably not quite as bad as an iPhone, but pretty close.

glenra2• 11 years ago

That's a tough call. Jewels generally lose at least half their value the minute you buy them.

"Because of the steep markup on diamonds, individuals who buy retail and in effect sell wholesale often suffer enormous losses. For example, Brod estimates that a half-carat diamond ring, which might cost $2,000 at a retail jewelry store, could be sold for only $600 at Empire."

http://www.theatlantic.com/magazine/archive/1982/02/have-you...

pinaceae• 11 years ago

just wait till the millenials start marrying. and there is a resurgence in marriage. it is all just waves and cycles. all you need is one pop singer to bring piercings back and off we go.

coralreef• 11 years ago

I wonder if this is true for china

Tiktaalik• 11 years ago

Could the growth of hobbyist makers creating jewelry for sale at craft fairs, Etsy, and small lifestyle shops be the main reason for decreasing traditional jewelry industry sales?

These types of jewelry are what I see all my friends wearing. They're pretty, interesting and of artistic merit, but they're not often not made of terribly valuable materials, and so they're not very expensive.

djoshea• 11 years ago

This seems to follow Betteridges' Law. No coherent argument made for the case that there's any interaction between tech and jewelry. Intuitively, I think the Millenial generation cares less about ways to show material wealth, so that extends to cars, jewelry, clothing, etc...

jordan0day5• 11 years ago

Intuitively, I think the Millenial generation cares less about ways to show material wealth

I want to believe that, but, you know, "millenials" are still human beings, too. I'm going to err on the side of them being just as vain as the rest of us...

Rather, the article mentions that millenials are more inclined to spend money on "experiences" than shiny baubles -- but thanks to social networks, experiences are the new shiny baubles. And even more effectively so: In the past, when your s/o dropped a months worth of pay on jewelry for you, you could still only show it off to people you saw in-person. Now, when your s/o pays for you to go on vacation, you have status updates and photo sharing to show everyone you've ever known just how conspicuous your consumption is.

All that said, I know I've read articles that state (and it certainly seems reasonable) that people who spend their money on experiences rather than material goods tend to be happier. So maybe it's overall a net positive.

LargeWu• 11 years ago

Maybe people are starting to catch on that gemstones are big fucking scam. The entire value proposition of gemstones and precious metals is scarcity, which is artificially controlled by cartels like De Beers.

jordan0day5• 11 years ago

My gut reaction is: Let's hope so, and if it has, good riddance.

Obviously, though, tech has not killed the jewelry industry. Jewelry suffers from being the fashion industry at it's most reductive: all form, no function. That is, we all gotta wear clothes, nobody's gotta wear jewelry. There's probably quite a few cultural changes all hitting the jewelry industry at once: people are marrying later in life than they used to, it's taking younger people longer to become financially stable than it used to, and what counts as a good gift isn't what it used to be -- the article itself says as much:

"But it’s not all Kindles and iPhones; according to the De Beers report, millennials are choosing to spend their dollars on experiential activities over luxury goods as well."

toomuchtodo2• 11 years ago

Obviously, though, tech has not killed the jewelry industry.

I don't know if thats accurate. Supposedly, tech hasn't killed vehicles ownership either for Millenials, but it sure looks like it's helping dig the grave:

http://www.fastcoexist.com/3027876/millennials-dont-care-abo...

"Because millennials use technology in every facet of their lives—from mobile phones to tablets and laptops—to connect with friends and family and to get work done, the tech gadget is their most prized possession, and has a much higher value to a CMC than transportation or owning a car. Think about it: while CMCs are likely to share a car and a ride, there’s no way they would ever share their phone.

CMCs game together and hang out virtually, they don't have that same need to physically get together as prior generations. The CMC’s popularity and relationships are defined by their online status, not their "cool ride" and they make all of their connections online. millennials search for jobs online. They prefer to coordinate dating online, and meet people through websites and apps."

jordan0day5• 11 years ago

Eh, I meant the "obviously... has not killed" as more of a "If it's dead, why are there so many freaking Kay Jewelers commercials on TV?"

In all honesty, tech probably is "digging the grace", so to speak. The blurb I mention from the article goes on to illustrate how an expensive vacation, shared via photo streams and status updates on social media, is probably displacing the "Check out this jewelry I got! U jelly?"-type of conspicuous consumption people used to partake in.

wyager3• 11 years ago

That is, we all gotta wear clothes, nobody's gotta wear jewelry.

Well, strictly speaking, we don't usually have to wear clothes. In the modern urbanized lifestyle, clothing serves almost no important function during warm weather. The main reasons I wear clothing during warm weather are social and legal pressure, not pragmatism.

jordan0day5• 11 years ago

The main reasons I wear clothing during warm weather are social and legal pressure,

So what you're saying is... you gotta wear clothes?

mc322• 11 years ago

Well there are also aspects of sanitation and safety (a layer of protection between you and environment) and also protection from overexposure to UV. So it's not only social mores.

NhanH• 11 years ago

The range of weather that allows human to function properly and comfortably without clothes is extremely limited (I'd guess something like 17 to 25 Celsius, cloudy and no rain or wind). I live in Southern California, arguably one of the tamest weather there is in the US, and I can imagine only ~1-2months of the year that I'd try to go naked outdoor. And there are easily a few billions of people living in tropical country that has weather alternating between 30+ Celsius and raining. So strictly speaking, we usually have to wear clothes.

Although if you s/clothes/suits, then the argument would probably be true ;).

coldtea3• 11 years ago

In the modern urbanized lifestyle, clothing serves almost no important function during warm weather

If you only count "saves us from low temperatures" as important and not "enabling me not to see most people's genitals unless we're in a romantic relationship".

Why would I want to see, say, anybody's testicles or someone's half-wiped ass while I work? Even tits, which I'd normally like would be more of a distraction (and no, it's not due to not being de-sensitized to them: you can never be de-sensitized to tits).

pbreit• 11 years ago

You're gonna site naked on a shared chair after dropping a BM? That's disgusting.

mc322• 11 years ago

I thought that in times before banks were trustworthy stores of wealth, people used jewelry (there were other items as well) as one way to hold and carry their wealth and converted it as necessary. That use I think died out pretty much by the 20th century. Now people use banks to store their money assets, so jewelry was more a vestige of those times, in some respects.

je42• 11 years ago

On the other this might become a thing again, since Banks start to handle negative interest rates. http://www.zerohedge.com/news/2015-01-24/get-ready-negative-...

lurcio• 11 years ago

High-end jewellery still serves that function for many who don't trust the banks, want to diversify from currency for some longer term store of wealth, or want to discreetly move some wealth across borders.

bhousel• 11 years ago

Yes, because nobody wears jewelry anymore.

marincounty• 11 years ago

"What changed!"= Blood Diamonds in my world, and the realization that certification means nothing in most instances, and I still remember the microscopic stone my brother was talked into under the stress of shotgun wedding.(Brother I still feel your pain) As to gold jewelry, I don't know, but I think younger people will realize the value in a gold mechanical watch--that with the right care will last a lifetime. I didn't appreciate fine mechanical watches until I was 40. With a lot of diligence it is possible(some people) to do your own repair, cleaning and oiling of their own watches. It's a good feeling looking down at your wrist knowing you can repair it if it breaks down. If women are interested in mechanical watches they are practically giving them away in the used market market. The gold ones are literally selling for scrap value.

mrob• 11 years ago

Mechanical watches will always be a niche form of jewelry because to the casual observer they are indistinguishable from the cheaper and functionally superior quartz watches. And even if they have exposed mechanisms it takes specialized knowledge to know how expensive they are.

thaumasiotes5• 11 years ago

"Buy a mechanical watch!

It will cost you significantly more than a lifetime supply of quartz watches.

It will require more maintenance than a quartz watch.

And it will keep less accurate time."

Where's the value?

TeMPOraL3• 11 years ago

Where's the value?

Lasts a lifetime. Which means it:

- acquires sentimental value; it can be passed on to children, and then to grandchildren

- doesn't tie you to the economic system that much - you bought it, you have it, you don't need to go and buy a new one every year

- doesn't generate so much waste; lets you refuse participating in the waste-generation system

- still a much better value store than diamonds

gaius• 11 years ago

It will cost you significantly more than a lifetime supply

People who believe that, are going to spend an awful lot more on smart watches, than a Rolex costs, in the next 10 years.

nibornarod• 11 years ago

Diamonds are mentioned a lot in the article, as is the birth of the jewellery industry post WWII.

I think its become a lot easier to discover that diamond scarcity and intrinsic value is artificial and was pushed by De Beers, who have global dominance in the market, to create a industry especially around engagement rings.

I'm not surprised demand is dropping, we have better information and more choice now.

I like this article on the the diamond cartel mainly because it was written in 1982 and shows how long this has been relatively common knowledge - http://www.theatlantic.com/magazine/archive/1982/02/have-you...

kbart• 11 years ago

Exactly. I'm actually surprised that an overpriced piece of mineral managed to keep such high value for so long. I would seriously doubt person's intelligence if he/she bought something with diamonds (unless that's for industrial use).

EDIT: rock -> mineral

ripberge• 11 years ago

I don't see much difference between jewelry and any other business that's been disrupted by Internet commerce. Except maybe women have a stronger place in society now and they care less about jewelry for their self worth (pure conjecture)?

One jeweler interviewed for this article is surprised people would go online and buy diamonds site unseen from Blue Nile. Having just done this dance myself, walking around the diamond district LA (and getting referrals from friends) I would not trust most of the jewelers there further than I could throw them. I would be more inclined to trust publicly traded Blue Nile that I was getting what I paid for.

ivv• 11 years ago

A lot of it has to do with demographics. Fewer people are getting married, and those who do, get married later in their lives. The engagement ring is usually only the first of the many jewelry purchases you make -- a lot more come after you get married. The car industry has a similar problem -- married people are the ones who become owners of homes in the suburbs, which often requires two cars to get around.

zaroth3• 11 years ago

If jewelry was priced, sold, and resold efficiently (which is becoming more true over time) then unless you break it or lose it (and for that there's insurance) then it's just another store of value.

The few diamonds I've ever purchased, I've done through eBay. GIA certified, laser inscribed, and then verified under a loupe upon receipt. It was not a pleasant experience, but it was worth the considerable hassle. I took them to my jeweler to set them and he was blown away by the price I paid. He immediately asked for the sellers info, claiming that he pays more. Maybe an act, I don't know.

Jewelry stores going out of business is very different from the jewelry market going out of business. I think a surprisingly large amount of the market is being redirected to private purchases. Costume jewelry is also a fast growing market and is driving the growth of a lot of startup marketplaces.

I think a diamond can be damaged, but it cannot be "used". In fact, documenting the history of a diamond (a neat business idea) can only possibly enhance the stone's value.

ismail• 11 years ago

"then it's just another store of value"

I agree with this if the Jewellery in question is pure gold 21k and the like. Diamonds however, i do not believe to be a store of value.

Ever try selling a diamond back after a few years? I doubt you would get back the price you paid for it.

Gold however, can be easily sold back. Dealers will pay you at the going rate of Gold per gram, or maybe at a slight discount.

"I think a diamond can be damaged, but it cannot be "used". In fact, documenting the history of a diamond (a neat business idea) can only possibly enhance the stone's value."

Interesting idea, think it may have some value for people who want unique stories to tell.

aestetix• 11 years ago

I think it's amusing that the author does not think iPhones are a fashion statement. :)

Has Technology Killed the Jewelry Industry?

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