This year, the topic was all about the price of precious metals and the decline of the dollar. Although prices haven't risen too much above last year's prices (many silver jewelry wholesalers have come up with stop-gap solutions to higher costs), there was definitely some tension in the air. I also came across people selling silver and gold plated items over base metal or copper, something that was not even a consideration two years ago.
The whole plating thing seems like a good idea on its face, since it can drastically reduce production costs, but it certainly has its negatives. Logically, it makes sense to try and reduce costs by reducing the amount of precious metal involved, but I think ultimately the product is cheapened to the point that consumers will rebel against it.
Plating over base metal makes the product very similar to fashion jewelry in perception, if not in actual fact. Even though plating, as opposed to vermeil or silver wash, is very durable and will likely never wear through, the idea that there is something less "pure" under the silver or gold surface will ultimately turn consumers off. Sterling and gold have a certain cachet that is diminished by the idea of plating.
One good thing about plating is that it offers consumers a choice. They may experience sticker shock or complain about rising silver prices, but when presented with a less expensive plated alternative, I predict they will head for the real thing nine times out of ten.
So maybe offering a few plated items will help customers internalize the recent and continued price increases. When given the choice between an "inferior" plated product and a "pure" precious product, customers will have an option rather than being faced with just the higher price tag.
More on this and a detailed review of the Tucson Gem Show later.
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