Jewelry Trivia!

Here's some fun facts on jewelry! For more information on jewelry, including baby earrings, please visit our site!

1. True or False: The recession of 2008-2009 saw the greatest number of people leave the jewelry industry since the Great Depression.

2. True or False: In 2007* dollars, the price of gold has never been higher than it is today. (*The year 2007 was used as a benchmark in a recent U.S. Department of Commerce study).

3. True or False: The emergence of new channels of distribution and marketing, such as the Internet and social networks, is an unusual phenomenon.

4. True or False: The disappearance of several jewelry chains created opportunities for the small jewelry retailer.

5. True or False: Since it appears that the recession of 2008-2009 is history, jewelers can stop worrying about future recessions.

Answers to Quiz

1. False: The recession of 1981-1982 created a mass exodus of jewelry manufacturers that moved overseas to take advantage of lower labor rates. Many jewelry factories closed, sending tens of thousands of skilled but unemployed jewelry workers into other industries.

2. False: In 2007 dollars, the 1973-1975 oil-driven recession hiked gold prices to $2,300 per ounce. (For those interested in such matters, this suggests the current price of gold could go higher.)

3. False: New distribution and marketing channels-think TV shop-at-home retailers, catalog showrooms, home-party companies, kiosks and more-are always emerging and disappearing.

4. True: With the disappearance of so many jewelry chains, many potential jewelry consumers are left "uncovered." This offers a wonderful opportunity to those jewelers that are skillful at marketing.

5. False: Recessions are part of the business cycle. Just as there are boom times (the 1980s come to mind), there will also be busts. Successful business leaders (Warren Buffett, check your BlackBerry) anticipate both and are never caught flat-footed.