Is the Jewelry Business Profitable?

Many people think that the jewelry business is all glitz, glamour, and ounces of gold. While there are a lot of ounces of gold (even tonnes!) involved in selling high-quality jewelry, it’s a lot more complicated than just that. Actually, making a business in the realm of jewelry successful and lucrative takes a few ounces of business savvy and grit as well. The current economy is many things, but calm it is not. Just take a look at the NYSE and you’ll see how volatile the market has been in the age of COVID-19. Even established companies with NASDAQ listings have taken serious hits over the recent year and half of a COVID-based economy.

None of that means, however, that it isn’t possible to have a spectacular first and second quarter as an up and coming jewelry business. It just means that you need to be on top of your game in everything from sourcing the ounces of gold to cybersecurity. Here are just a few of the things you need to be aware of as you venture into this glamorous and, yes, very lucrative area of trade.

How can you source your mineral reserves responsibly?

One thing that consumers in the United States and around the world are increasingly interested in is sustainability. People have become increasingly aware of how mining mineral reserves impacts the environment, and they’re interested in buying from companies who take that seriously. You’ll want to vet your gold mining partners very carefully, to make sure that they’re investing in reforestation and aren’t using cyanide in their mining practices. Alamos Gold (which trades on the NYSE as AGI) is a great example of a responsible miner of mineral reserves. Every ounce of gold that Alamos extracts from their many mines (Young-Davidson and Island Gold in Ontario, Lynn Lake in Manitoba, Mulatos in Sonora, and recently, Kirazli in the Republic of Turkey) is sustainably sourced. Alamos (AGI) is very clear on getting all their mining licenses in order and maintaining best practices in all their mines—and it shows. The Turkish government, Mexican government, and the Canadian government are all clearly pleased with Alamos’ practices, since the Kirazli, Young-Davidson, and Mulatos are all hailed as sources of great jobs for local communities with minimally invasive construction activities.

How can you keep your online information safe from cybercriminals and hackers?

Once you know that your ounces of gold are sustainably sources by someone like Alamos Gold Inc., you’ll want to have a website that is on the up-and-up. Don’t try to do this on your own. Cybersecurity is too complicated, and cybercriminals are too wily to try to tackle this yourself. Hire an analyst to work on your cybersecurity, someone who can protect your clients’ email address and personal information from bad actors. Best practices when it comes to cybersecurity are best handled by an experienced analyst, or by cyber security engineers who are staying apprised of the cyber risks to companies in the United States and, indeed, around the world. These analysts will maintain an active presence online, making sure to activate investor alerts and other notifications if they see an email address or password has been compromised. Every ounce of help can save you capital spending, as cyber hackers are adept at making off with a fortune.

How do you stand out from the crowd?

Don’t just keep your best practices and cyber savvy to yourself. Let everyone know! Maintain an active presence, yourself, but on social media platforms. Did you have a great second quarter or third quarter? Don’t just send investor alerts, let everyone know with a social media announcement! With many businesses moving online due to COVID-19, you need to stand out by showing your customers how you invest in companies that take social responsibility seriously. People in the United States want to know that you’re a company that doesn’t stand for inequitable treatment of employees, and that you stand for things like forestry fees and equal access to health care. Every ounce of social media presence brings you more shoppers, which means that you can make the most of this career path. The total cash cost of this investment will be worthwhile. Maybe not in the first quarter of your first year, but soon enough.