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Gold-buying programs can do more than help retailers

on Tuesday,May 18,2010 20:05

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Most veterans of the jewelry industry agree that gold-buying has helped many of their businesses weather the economic recession. The price of gold continues to increase. In addition, many gold owners are looking to avoid financial difficulties of their own. The result is mutually beneficial, in most cases.

Gold-buying programs have been very profitable for retail jewelers, Stevan Buxbaum, executive vice president of Buxbaum Jewelry Advisors, stated in an article on Diamonds.net. Many jewelers can easily resell the gold pieces, Buxbaum adds, and sometimes will offer store credit to the original owners in return.

However, gold-buying competition has become intense in some regions. Cash-for-gold ads are commonly seen in shopping centers, websites and strip malls. Buxbaum believes that it's the established jewelers who have the edge here. Emphasizing their trustworthiness and good reputation for fairness can ease qualms on the part of those about to sell a family heirloom, for example. After all, both buyer and seller have incentive to make a fair deal.

So while an intelligent, and honest, gold-buying program has been essential to the survival of some jewelers, Buxbaum's writes, the jewelry business continues to be one where offering well-made, stylish pieces at the right price stills wins the day.
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