Can nine-karat gold shine as bright as its higher-karat cousins?

by charlene_voisin | July 1, 2013 9:00 am

By Sara Duck

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Nine-karat, 14-karat, or 18-karat? If you carried only one in your store, which would it be? This may seem like a no-brainer. You may opt for the higher karat for obvious reasons, such as more gold content. Or maybe your customers find the shine of gold in higher karats more brilliant and eye-catching. It could be also that they just like the cachet and luxury factor these metals possess.

No doubt, many associate nine-karat gold—the lowest gold grade that can be sold in Canada—with jewellery of the past, vintage and dated. Thoughts of this precious metal may also quickly conjure visions of retail establishments like Walmart, which carries an assortment of jewellery in low karats.

For collector Stephanie Smith, nine-karat jewellery means something else. Smith explains she has a cherished pair of nine-karat gold earrings passed down from her grandmother that still look great and have stood the test of time. “I have no problem buying nine-karat gold today,” Smith chimes. “To me, the beauty lies in the detail and craftsmanship, not karat value.”

Naomi Traimer of Silver Gate, a wholesaler based in Toronto, agrees with Smith’s comments and adds that when it comes to her brand of nine-karat gold jewellery, she finds her clients care more about style and uniqueness than the number preceding ‘Kt’ stamped into the piece.

Trying something different

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Attitudes among designers may be changing. Look no further than Italian brand Garavelli, which is testing a new line of nine-karat gold in some markets. The collection is a far cry from the company’s staple of 18-karat gold pieces, but the catch is, the lower content prices the jewellery at what the metal cost five years ago. Consider also Tiffany & Co.’s Rubedo, a proprietary alloy comprising 55 per cent copper. With a gold content of 31 per cent or 7.5 karats, it is far too low to legally carry a gold stamp, which according to the company, has not worked against it.

An interesting perspective comes from the other side of the world. Steve Sesselmann, owner of Bee Jewellery in Australia, sees resurgence in nine-karat gold in his country. “I believe we are now seeing a swing back to this [metal],” he says. “Consumers are largely driven by what jewellery is being marketed, and I believe the time is ripe for this gold.”

According to the Competition Bureau, and contrary to what many throughout the industry believe, nine-karat gold products are legal in Canada, (even as finished jewellery or casting grains, etc.) as long as they are stamped as such.*

Sesselmann also supplies to the Canadian market. Even though he only has a few active customers here, he says nine-karat gold jewellery is an option they rely on to satisfy the price-conscience consumer’s appetite for the yellow metal. Could this lower alloy shine in today’s Canadian market? Let’s consider the evidence.

Popularity contest

When it comes to the popularity of the various karats around the world, it’s interesting to note that in North America, 14- and 18-karat gold are predominately used in fine jewellery, 18-karat is preferred in Europe and Asia, and in India, it’s 22- and 24-karat. However, in the Australian market, consumers are used to the term ‘nine-karat’ and see no problem with it being used in the fine jewellery category. Of course, the higher karats are readily available there, but Sesselmann lets us in on a consumer secret. “Many in Australia see nine-karat gold as a stronger alloy because it is largely mixed with other metals,” says Sesselmann.

So could the popularity of karat simply come down to where you live and what most consumers are buying? After all, the masses can keep a trend going until it becomes de rigueur. Consider for a moment that since nine-karat gold has simply gone unused for so long in most markets, maybe it has un-vogued itself? Traimer—whose line of nine-karat jewellery is manufactured in Israel—has a different opinion on the matter. “I think in the past, nine-karat gold may have had a stigma that it was [inferior], and that’s a hard reputation to break,” she says.

However, the answer for many jewellers could be as simple as removing that stigma by reintroducing clients to nine-karat gold and getting them excited for a lower-content alloy that still provides them with that gold look. “The price is the reason why we work with nine-karat gold,” says Traimer.

Relevance in today’s market

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“Lower-karat gold absolutely has a place in today’s market,” says Amanda Gizzi, director of consumer communications for U.S.-based Jewelry Information Center (JIC). “Gold is always in demand and for those who want to buy, give, or receive gold but are on a tight budget, lower-karat jewellery is a good option.” Gizzi confides, though, she hasn’t noticed a big increase in the use of lower karats from the industry in the United States. Even with the increase of gold prices in the last decade, she has seen jewellers who typically design in 14-karat gold and above find other ways to keep their costs down. These methods include adding gold accents to sterling silver pieces and making lighter-weight designs.

As a component to two-metal fashion jewellery, though, Traimer says the lower cost appeals to those who want some gold and don’t mind that it’s in the form of nine-karat. “Silver is silver—it’s not gold,” she adds. “They say silver is the new gold and it’s very popular, but it looks different and it isn’t the same as gold.”

Sol Unger, owner of Toronto’s Act II Fine Jewellery, says he would carry nine-karat gold jewellery if he could find a supplier. Although the price of gold at the time of this article’s writing was below $1400 US an ounce (the lowest it’s been in two years), Unger doesn’t see that as a reason not to offer lower-karat jewellery. Market fluctuations are just that.

“It’s strictly a matter of price,” Unger says. “Gold prices go up and down all the time, but I know nine-karat would cost 10 per cent less than 10-karat, and that would make a difference for sales. We have no problem selling 10-karat, so we could sell nine-karat as well, as long as the two lines were different.”

Until recently, Unger presumed 10-karat gold was the lowest grade of gold available in Canada—that was until he stumbled across a nine-karat gold jewellery display at The Bay and inquired about it. He found out the line was imported from Europe, where nine-karat gold jewellery is quite common.

Traimer has noticed a different trend in the Canadian market, though. “Due to the increased price of gold, nine-karat is becoming more widely accepted, especially in high-fashion jewellery,” she says, adding a line of black diamonds set in sterling silver with nine-karat gold resonates with her clients.

Experts agree it would take a trained eye to be able to tell the difference between karats of gold just by looking at it. So if a jeweller decides to showcase beautiful designs in lower karats, can they get away with branding it in the same category as fine jewellery? Sesselmann thinks yes and echoes Smith’s words: ultimately the fineness of jewellery is in the design and the craftsmanship, not just the karat.

Could it be time for a nine-karat gold jewellery renaissance in your store? By weighing the pros and cons of showcasing this lower alloy, it’s up to you, the jeweller, to find out.

* For more information on stamping requirements, see the Precious Metal Marking Act and Precious Metal Marking Regulations.

Sara Duck has been bringing her passion for style and trends to the publishing world since 1999. Her work has graced the pages of top Canadian magazines, including Images, Weddingbells, and Fashion 18. Along with freelance writing, she is currently the managing editor of Home and Décor magazine.

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