Jeweller - June, Edition I 2020

More documents

Recommendations

Info

REFINING FEATURE | Liquid Gold effect, “The demand for our refining services increased substantially. Jewellery retailers and manufacturers sent in large amounts of scrap and lemel to ensure they could have extra funds if needed. “We also found an increase in the number of sweeps received. With restrictions easing, we have found the demand is back to its normal level,” he adds. At Pallion, Botha says, “Our refinery facilities refine next to half of Australia’s precious metals output and have continued to work round the clock to meet marketplace demand since the pandemic. We have seen record-high refining jobs coming through [from] the jewellery industry. “Many jewellers during these trying times have been conducting spring cleans and sending their lemel scraps for refining to assist them to weather the storm. This was also compounded by the upcoming end of the financial year.” Meanwhile, Van Sambeek says, “Temporary [store] closures as a result of COVID-19 gave our clients an opportunity to do some long overdue house cleaning. “The high gold price, in conjunction with economic uncertainty, has seen an increase in refining, with many clearing old or slowmoving stock, surrendered for cash or metal.” Beck has also noticed a “definite increase” in demand for precious metal refining in recent months. “We believe this is mainly to act as a source of cash flow for both retail and manufacturing jewellers in these difficult times,” he explains. “This period of strong precious metal pricing and difficult trading is an opportunity for jewellers to manage any precious metal stock, in either finished or unfinished form, through refining.” Beck recommends jewellers begin by refining old stock that has been in store for more than four to five years. “Because of the current strong precious metal prices, it is possible that precious metal value alone will return more than the original purchase price of the product,” he adds. Meanwhile, Sher says jewellers should refine “fairly regularly” as fees are low in proportion to the payments received for precious metals. “Due to the high gold and palladium prices, high-carat and white metals containing platinum and palladium are the best to refine first” Adam Van Sambeek, Morris & Watson “The advice is to, where possible, keep all your metals separate in these categories: silver, yellow gold, white gold and platinum,” he adds. “This can make refining charges more economical as two-metal refining (gold/silver) is less expensive than four-metal (gold/silver/ platinum/palladium) and platinum-only. We provide guidance on how to separate metals to ensure fees are SUMM A RY Key Points Precious metal prices have increased Economic uncertainty has pushed investors towards ‘safe havens’ Jewellery demand has declined Falling consumer confidence and retail restrictions due to COVID-19 have combined to reduce jewellery sales Refining can financially benefit jewellers In the short-term, refining can assist in maintaining liquidity Stock management is critical Post-crisis, refining ensures jewellers have fresh stock and resources as low as possible.” Van Sambeek advises, “Due to the high gold and palladium prices, highcarat and white metals containing platinum and palladium are the best to refine first.” “But as most metal prices are up, any refining will help release funds quickly during this time,” he adds. And when choosing a refiner during the uncertainty of COVID-19, Hayes recommends taking a careful approach, pointing to several US refiners who have declared bankruptcy in recent years, leaving their customers’ metal in the general creditors’ pool. “Avoid taking unwanted credit risks – especially if there are financial liability issues,” he advises. Botha adds, “There are very few true ‘refiners’ in Australia – many who claim to be refiners are merely aggregators. Make sure you send your refining job to an entity that actually refines; otherwise all you are doing is paying a middleman. We are the only independent London Bullion Market Association (LBMA) and Shanghai Gold Exchange (SGE)-accredited refinery in Australia and you can take a virtual tour of our refining facilities on YouTube.” Indeed, stock management is a critical component of retail even in periods of growth, but the importance of generating cash flow by refining – where appropriate – is vitally important during the current crisis. As jewellers begin to reopen their doors and consumer spending on discretionary items increases throughout the second half of 2020, a solid refining strategy strengthens a jewellery business’ position – and gives it a better chance to survive and thrive. 32 | June 2020
Love isn’t cancelled, it’s stronger than ever. Our new ‘Momentum’ partnership provides the necessary tools to help steer our jewellers through this crisis with grace and gusto. We stand together, and hold our community close to our hearts. The time is now… we choose love! Discover the difference today. Sound like we are made for you? That’s because we are… Josh Zarb - CEO 0448 416 070 josh@jewellerscollective.com jewellerscollective.com #independentjewellerscollective
Page 1 and 2: VOICE OF THE AUSTRALIAN JEWELLERY I
Page 4 and 5: # 1 in Australia #3 in the World Je
Page 6 and 7: S A MS GR O UP A U STRA L I A WE’
Page 8: Upfront #Instagram hashtags to foll
Page 11 and 12: Let’s Talk It’s always importan
Page 14: News Michael Hill reopens 125 store
Page 18 and 19: News In Brief Diamond industry orga
Page 20 and 21: Created by members, for members. SH
Page 22 and 23: 10 Years Ago Time Machine: May 2010
Page 24 and 25: INSIDE My Store Sheila Fleet Jewell
Page 26 and 27: Ready Get Polish your gemstone know
Page 28 and 29: FEATURE Refining Stock LIQUID GOLD:
Page 30 and 31: REFINING FEATURE | Liquid Gold a 10
Page 34 and 35: FEATURE Trade Fair Exclusive THE CU
Page 36 and 37: THE CURRENT STATE OF AFFAIRS | Trad
Page 38 and 39: THE CURRENT STATE OF AFFAIRS | Trad
Page 40 and 41: BEST OF BUSINESS Feature ‘ONCE UP
Page 42 and 43: Be Reconnected UNITED | CONNECTED |
Page 44 and 45: BEST OF BUSINESS Selling Want to sh
Page 46 and 47: BUSINESS Management Now, more than
Page 48 and 49: BEST OF BUSINESS Marketing & PR How
Page 50 and 51: BEST OF BUSINESS Logged On Sharpen
Page 52: My Bench Richelle Perks Stephen Dib
Page 56 and 57: SAMS GROUP SAMS GROUP SAMS GROUP AU

Jeweller - June, Edition I 2020

Create successful ePaper yourself

Delete template?

Save as template?