ask Dave West: The Jewelry Expert

Create Your Own Custom Jewelry Online!

Have you ever been shopping for that perfect piece of jewelry – only to be disappointed that you can’t find exactly what your heart desires? Or do you just prefer to have a unique piece of jewelry that you had a hand in designing – customizing the piece just the way you want it?

One of the projects I have been working on - along with some of the finest jewelry designers in the business today as well as some "hurt your head smart" software engineers - is the Virtual Display Case or VDC as we call it.

The VDC was first introduced last fall as an in store computer station so customers could create customized jewelry in 3D and then have their choice made to order.

I am very excited to announce that the VDC is now available online on my website. You can browse, anytime anywhere, though huge selection of jewelry by leading designers (myself included) in photorealistic 3D. It is a LOT of fun - and just a little bit addicting.

Once you have selected pieces that you are interested in you can then view them in 3D and customize each one to your taste. The VDC allows you to change metals and gemstones and you can see your personal creation instantly in 3D. You can even save your creations in your own personal "jewelry box" and share them with friends and family. When you are ready to turn your favorite selection into made to order custom jewelry - we are just a click or call away.

To give it a try just click HERE

Or try the banner to the top right of this blogs home page - or the banner at the bottom of my websites homepage.

David W. Nytch, CGA www.westandcompany.com

On Line Diamond Sales

“What would you consider to be the key success factors of the online diamond industry.  Also, how important each one would be to the industry?”  - Matt

This recently received question is a subject that I have written about in the past, but is still is a relevant and hotly debated issue in the jewelry industry today.

I believe there are four basic reasons for the success of the online diamond sales:

1. Convenience and a feeling of being in control of the buying process.
2. The perception of a better price
3. The perception that diamonds are a commodity and the certificate contains all the information necessary to make an informed decision about beauty and value.
4. No sales tax

Taken individually there is nothing new about any of this – what is new is the combination of all four and the ease of access – virtually anywhere at any time.
The internet has been transforming the industry in ways that are still evolving.

And while I embrace much of this change it saddens me that there are those in the diamond business, as well as in the public, who believe or who want to believe, that the rare and very individual beauty of a diamond can be reduced too, determined and quantified by the numbers, angles, percentages and letters on a piece of paper. The whole of the online diamond industry rests, almost entirely, on a piece of paper.

David W. Nytch CGA www.westandcompany.com
     

   

Buying Gold and the Price of Gold

"Hi,

Is there a possibility of fall in gold prices due to the financial crisis in U.S?..."

This comment, recently posted, is a question that is popping up with frequency given the current economic conditions and I, like many, would just love to have a crystal ball about now.

There are those in the radio ads that have been saying that gold is going to continue to rise and may go as high as twice it’s current value – but they are also selling gold as an investment tool and it’s in their best interest to predict a upward trend. Who knows - they may be right. I have also seen predictions of the exact opposite –gold’s price will moderate and fall a bit, maybe even crash. I have even seen rumors on the web that gold’s price is being artificially manipulated. Like I said – who knows?

Demand for gold jewelry is most certainly down and like oil one would think that the price would drop as demand drops; and it did a little bit at the end of last year, but now it is creeping back up again. An economist, banker, financial adviser or currency expert are all much more qualified to make a prediction than I am – but my gut feeling (nothing more) is that the price of gold is going to stay around $800 to $1000 an ounce for quite a while.

Which brings me to the second frequent question – do you buy gold? I would think that just about everybody has seen the "cash for gold" ads on TV – buying and selling of scrap gold are big business.

If you are contemplating selling your old and broken gold jewelry here are a few tips to keep in mind.

Remember you are selling your old or broken gold jewelry for its scrap value. You will be paid based on the amount of pure gold the buyer estimates your jewelry has. If you have a 14k gold bracelet that weighs ¼ of an ounce only roughly half that ¼ ounce is gold. You will not be paid based on the beauty, craftsmanship, original value or personal value of your jewelry; only its gold content. Selling or brokering your jewelry as a piece to be worn and enjoyed is an entirely different subject.

Educate yourself and ask questions – knowing the gold content of the different gold alloys will go along way in avoiding being taken advantage of. Knowing the difference and how to convert between grams (Metric) and pennyweights (English) is also important. Some jewelers and people in the industry use grams only, but others, like me, are old school and use pennyweights.

Shop around, just like you would for anything else. The price paid for scrap gold will very greatly. Don’t be swayed by the claims or hype of some – the only thing that matters is the bottom line – how much are they actually going to pay.

If you are in the market for jewelry and you have broken or old jewelry you are not wearing it may be worth looking into trading it in against your purchase – many stores, mine included offer a premium on scrap gold when the customer is buying new jewelry

David West Nytch, CGA  www.westandcompany.com

Paragon Lake

 

2009 is the beginning of my 29th year in the jewelry business. In those 29 busy and exciting years I’ve seen the jewelry industry change and change again.

I doubt I will have much argument when I say the inter-net has, in an amazingly short period of time, transformed the jewelry business in ways that are still evolving.

Change always brings with it new ideas and opportunities. I have recently begun to do design work for a great new company that has an idea that has the potential to radically change the jewelry buying process.

Paragon Lake offers an ever expanding virtual inventory, from the best designers, made to order, using the inter-net. Interest in individualized or custom jewelry has been growing as more and more people appreciate the unique and special value of such jewelry. Paragon Lake has developed an easy and affordable way to bring the very finest in design, quality and craftsmanship – made especially for you - tailored to your individual desires.

Paragon Lake’s virtual inventory is available through a growing network of fine jewelry retailers. To find the retail store closest to you call customer service at 888-797-2878

Until next time that is how I see the world of jewelry from Rochester, NY

David W Nytch CGA  www.westandcompany.com

Dave West Talks Ran Opals: A Podcast with Yvonne DiVita

In this week's podcast, Dave West ( aks: the Jewelry Expert) discusses how he came to create the beautiful Ran Opal design from this previous post. Dave shares his focus on design styles that are both unique and beautiful. The details are extraordinary and took some stepping outside the box.

The many colors of Diamonds

When many people think of diamonds they think of a “white” (colorless to near colorless) diamonds.
For a good reason too, the unequalled brilliance and beauty of a “white” diamond has been treasured for thousands of years. And while diamonds are rare things of beauty - every now and then nature takes it a step further and produces something so extraordinary I am at a loss to describe it – a diamond with color.    

Have you ever seen one of these wonders; a blue diamond, pink diamond, or rarest of the rare - a red diamond? How about a black diamond, or olive, or green, maybe an orange or purple diamond; what about a brilliant yellow diamond or a rich deep brown diamond, a bubbly champagne diamond, or the exotic warm color of cognac diamond. All of these amazing colors occur in varying degrees of purity and intensity – the combination individual color and brilliance is beyond description.

As Yvonne DiVita and I where discussing in a recent pod cast – awareness and demand for colored diamonds is on the increase. The marketing campaign by Rio Tinto’s Argyle Mine of Australia to raise awareness of the “Champagne” colored diamonds along with the increasing quality and availability of enhanced colored diamonds is expanding the way we look at diamonds.

Ask Dave West: Diamonds that Speak to You

Welcome to the second podcast in the continuing Ask Dave West series of talks on fine jewelry and gemstones.

Today, Dave West and Yvonne DiVita discuss the enduring tradition of the diamond engagement ring - and why that will likely never fad away. Dave talks about "diamonds that speak to you" and how he listens for that song, when he's getting ready to create a new piece of sparking jewelry, whether colored diamonds, other fine gems, or traditional white diamonds.

As always, join in by leaving your comments and questions at the end. Thanks!

From Yvonne DiVita and David West Nytch, CGA at West and Company

Ask Dave West: Champagne Diamonds and Colored Diamonds Create New Sparkle

Welcome to the first in an on-going series of podcasts with Dave West and Yvonne DiVita.

Today's podcast discusses champagne diamonds and colored diamonds - and how they are influencing the craftmanship of jewelery for the many occasions we buy gemstones, including engagements,wedding anniversaries, and other special events.

While champagne diamonds are not really new to the scene, the general public is not as informed about them as they are about the traditional brilliant diamond, or white diamond. As Dave will show you in this podcast, colored diamonds are also stirring interest with buyers and are being used to create some stunning jewelry pieces for almost any occasion.  Yvonne DiVita

Ran Opals

It has been a busy spring and summer and I haven’t seemed to make the time to devote to a blog post or two – even though, in my travels and work, I’ve come across an interesting thing or two.

 

One of the most beautiful and unusual works of art I came across are boulder opals that have painted designs using the traditional Japanese art of Maki-e enhancing the natural color patterns of the gem. Called “Ran” (from orchid – meaning beautiful thing) Opals they definitely live up to the name.

Maki-e uses powdered pure gold, platinum (as well as other metals) and shells along with urushi, which is a natural lacquer made from the sap of the urushi tree. The design is applied by hand using special brushes along with a lot of skill. The results are not only durable but stunningly beautiful –so much so that it is a design challenge (and one I thoroughly enjoyed) to create a piece that enhances rather than detracts from the opal.

Until next time – that is how I see the world of jewelry from Rochester, NY

David West Nytch CGA  www.westandcompany.com

On-Line Diamond Interview

I recently received an e-mail from a journalism student looking to do an article on jewelry sales online. Laura had some great questions that are well worth posting. So with Laura's permission, here is her original e-mail and my answers.

  Dear David,

I am a senior journalism student at California State University, Northridge, and I am currently working on an article (for grade not for print) about the boom of online sales of engagement rings. I was wondering if I would be able to ask you a few questions on the topic? I would like to include your views in my article.

Below are the questions I would like to ask you if you would like to help me out.

 
1. In my research I discovered that independent jewelry shops rely heavily on the sale of engagement rings as their main source of revenue. What has been the effect on independent jewelry shops since Blue Nile, and others, have opened online websites where people can purchase engagement rings that are less expensive but are the same cut, carat, color etc?

Independents have certainly lost sales to online diamond retailers, however online diamonds sales, while growing, still represent a relatively small part of the growing engagement ring market in the US. And while it may appear that online retailers are offering the same ring for less – they often are not. Diamonds are not the commodity that some would have people believe. By that I mean that two diamonds of similar cut, color, clarity and caret weight are not necessarily equally beautiful. I have looked at more engagement rings that where purchased online than I care to count and while as a general rule (there have been some frightening exceptions), when purchased from a reputable company customers are getting what they paid for - I have, however, yet to see a customer who got the best they could have for their money. The difference is always significant.   

2. Has the popular rise of online jewelry stores affected bigger chains like Tiffany, Zales etc?

I'm sure it has- but to what degree I cannot say. Most of the majors also have effective online stores to compliment their traditional operations – I would think it has been a benefit because their customers too have the best of both worlds at their disposal. This is also true of many independent operations as well.


3. What is the difference in mark up on an engagement ring that would sell in an independent store to one that would sell on Blue Nile?

Markups depend on many factors and are going to vary between different retailers. This is true both for online stores as well as independents. Since most online stores sell “al a carte” vs all inclusive - the way most independents do – the difference is can be insignificant to none at all when its all added up.


4. Buying an engagement ring is one of the most important purchases a man (or couple) will ever make. Apart from the price, why do you think some people are happy to buy, without seeing the actual ring they are purchasing, such an important (and expensive) item?

I have to say that this had perplexed me for quite a while. Having been in this business for 25 years I have to admit I never saw it coming. You have to understand that I have never, nor do I know any jeweler who has ever brought any diamond without first looking at it!
That said I think there are several reasons.
• Most important is that many people have brought into the premise that a diamond is a commodity and diamonds of similar grading are of equal beauty and value. There is also the perception that an independent laboratory report, or “cert”, especially from the GIA, is a guarantee of that beauty and value. This is a fundamental misunderstanding of both the grading systems purpose and the limitations of and the reason for an independent grading report. However misguided - these perceptions are what make online diamond sales possible.
• For years the industry has been plagued with jewelry retailers selling by using misleading tactics and false discounting, which has confused the customer and eroded the faith and confidence of the public in the value of diamonds. Throw in uneducated and bad behavior by sales associates, poor service, shoddy jewelry and the list goes on, it is no wonder that jewelers are no longer perceived, and in many cases for good reason, as professionals that can be trusted.
• Control – I think the internet gives the buyer a feeling of being in control of the situation, instead of having to rely on someone else. There is also a level of comfort in making your decision based on angles, percentages, numbers and letters. It takes the subjectivity out of the equation and makes it like purchasing a car – compare the stats, compare the price. It is the worst possible way to buy a diamond – but I can understand it.    

5. Do you think that buying an engagement ring online takes a bit of the romance out of the whole process?

Absolutely! Just like every woman is an individual – every diamond is an individual. Believe it or not diamonds will “talk to you”. I can look at hundreds of wonderfully beautiful diamonds and a few will stand out to me and talk. This is nothing you can quantify or put on a chart – it is all about individual beauty.
For someone to take time, to look at and compare diamonds, searching for that perfect one – that to me, is the ultimate expression of love.   

6. Do sales associates at retailers, in particular, Tiffany, earn any commission on engagement ring sales? The men I have interviewed say that they opted to buy an engagement ring online after having a negative experience with a sales associate - the name Tiffany popped up numerous times.

It depends on the retailer – some associates are on commission and some are not. I do not know about Tiffany’s – but it is not the first time I have heard the complaint.
As I said earlier – bad behavior on the part of sales associates is a problem; I‘m not sure that being on commission is the only cause.
When shopping for an engagement ring you are really shopping for a jeweler as much as a ring. If you are faced with a negative experience I always recommend you keep shopping – there are many excellent jewelers out there who will make the buying experience exceptional. It may take some work - but the right jeweler will transform the process into what it should be – a wonderful enjoyable experience with results that will exceed your expectations. You can’t get that online.   

7. Is the increase of online sales of engagement rings only in America or is this trend occurring around the world?

I would guess it is, but I am only familiar with the US market.

8. What do you forecast for the future of the online engagement ring market?

I think it will continue to grow for a few more years at least – but I am already seeing some signs of a backlash as more and more people realize that while the internet (like everything) has its advantages - it also has some serious disadvantages when it comes to the purchase of fine jewelry – I deal with the fallout every day.
An engagement ring is not only a very major purchase – unlike any other- it also symbolizes a couples love and commitment, the best results always come with the help and guidance of a trained professional.   

Thank you so much for taking the time out to answer my questions. I am very excited to write this article and will happily email you a copy when it is complete.
 
Thanks again,

Laura

David West Nytch CGA  www.westandcompany.com