7 ms·

Has Technology Killed the Jewelry Industry?

46 points by diodorus 12y ago

wallflower 12y 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 12y ago
  The article is more about the consumer side than the producer side of the jewelry industry.
jedberg 12y 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 12y 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 12y 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?
  - jedberg 12y 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.
    - kps 12y ago
      Where can one buy used diamonds? I don't imagine they suffer much wear, and they're millions of years old already.
      - thaumasiotes 12y ago
        I assume you'd get them in a pawn shop, still set in whatever they were set in when they were pawned.
    - JacobAldridge 12y ago
      But not over a decade or so. My old iPhone4 is probably worth (percentage wise) the same as a diamond purchased at the same time. But an iPhone2? My iPhone4 in the year 2020?
    - zaroth 12y ago
      How can a diamond be "used" anyway? The way I think of it, you have wholesale and retail markets, which I completely understand (profit through information asymmetry) but is there really something stopping the same diamond from being sold wholesale and retail dozens of times as long as it's not damaged?
      - TeMPOraL 12y ago
        > is there really something stopping the same diamond from being sold wholesale and retail dozens of times as long as it's not damaged? Yes. Tradition. You just don't sell diamonds, period. It's completely arbitrary - that's why it took DeBeers decades to firmly establish it within society in the past century. See the 1982 article every other poster links to.
- pinaceae 12y 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 12y ago
I wonder if this is true for china
Tiktaalik 12y 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 12y 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...
- jordan0day 12y 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 12y 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.
jordan0day 12y 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."
- toomuchtodo 12y 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-about-owning-cars-and-car-makers-cant-figure-out-why 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."
  - jordan0day 12y 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.
bhousel 12y ago
Yes, because nobody wears jewelry anymore.
deleted 12y ago
[deleted]
marincounty 12y 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 12y 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.
- thaumasiotes 12y 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?
  - TeMPOraL 12y 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
    - thaumasiotes 12y ago
nibornarod 12y 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-ever-tried-to-sell-a-diamond/304575/ http://www.theatlantic.com/magazine/archive/1982/02/have-you...
- kbart 12y 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 12y 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 12y 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.
zaroth 12y 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 12y 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 12y ago
I think it's amusing that the author does not think iPhones are a fashion statement. :)

46 points by diodorus 12y 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 12y ago
The article is more about the consumer side than the producer side of the jewelry industry.

jedberg 12y 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 12y 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 12y 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?
- jedberg 12y 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.
  - kps 12y ago
    Where can one buy used diamonds? I don't imagine they suffer much wear, and they're millions of years old already.
    - thaumasiotes 12y ago
      I assume you'd get them in a pawn shop, still set in whatever they were set in when they were pawned.
  - JacobAldridge 12y ago
    But not over a decade or so. My old iPhone4 is probably worth (percentage wise) the same as a diamond purchased at the same time. But an iPhone2? My iPhone4 in the year 2020?
  - zaroth 12y ago
    How can a diamond be "used" anyway? The way I think of it, you have wholesale and retail markets, which I completely understand (profit through information asymmetry) but is there really something stopping the same diamond from being sold wholesale and retail dozens of times as long as it's not damaged?
    - TeMPOraL 12y ago
      > is there really something stopping the same diamond from being sold wholesale and retail dozens of times as long as it's not damaged? Yes. Tradition. You just don't sell diamonds, period. It's completely arbitrary - that's why it took DeBeers decades to firmly establish it within society in the past century. See the 1982 article every other poster links to.
pinaceae 12y 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 12y ago

I wonder if this is true for china

Tiktaalik 12y 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 12y 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...

jordan0day 12y 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 12y 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.

jordan0day 12y 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."

toomuchtodo 12y 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-about-owning-cars-and-car-makers-cant-figure-out-why 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."
- jordan0day 12y 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.

bhousel 12y ago

Yes, because nobody wears jewelry anymore.

deleted 12y ago

[deleted]

marincounty 12y 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 12y 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.
thaumasiotes 12y 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?
- TeMPOraL 12y 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
  - thaumasiotes 12y ago

nibornarod 12y 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-ever-tried-to-sell-a-diamond/304575/ http://www.theatlantic.com/magazine/archive/1982/02/have-you...

kbart 12y 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 12y 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 12y 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.

zaroth 12y 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 12y 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 12y ago

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