Cause and effect: Great time to cash in.
With the pound being so weak against the dollar U.K export markets are being strangled as profitability is squeezed from balance sheets. However, gold and other precious metal prices are now soaring as more foreign investors seek to lock up liquidity into precious metals.
King Street Jeweller John Rees reported to the Knutsford Times yesterday that more and more people are now realising the value of the gold that is sat about in their homes doing nothing. “People are selling their gold and turning it into cash and with the pound rate against the dollar being at an all time low the strong demand is forcing scrap prices up”
It’s not all positive news as John told us that although there is a upturn in the wholesale of gold, the cost of new gold items is also on the increase. There are still benefits there although disguised somewhat in a resurgence of repairs and renewals. Customers are choosing to maintain existing watches, bracelets and other gold items on a grounds of cost saving.
The message here is clear though, John Rees and other jewellers like him are diverse in their offering by not just focusing on the pure sale of goods. “Repairs are a stable business for us and it provides an other economic facet for the shop” Diversification is fast becoming a pointer towards the nearest recession lifeboat and its a good message to new traders and existing businesses that are, although not openly, fearful of trade over the coming year.
Over many years time worn retailers and business owners have seen off a number of economic crises.We are inviting all time served town centre traders to comment about their views on surviving the economic downturn. Remember your experience counts and could help new traders with the guidance that is needed.
John Rees – 91 King Street, Knutsford, WA16 6EQ
01565 653 009