Century-old Covina jewelry business could be near closure

COVINA - Step into Roger Gama Fine Jewelry, and customers are reminded of the store's history when they see an antique metal safe bearing the name: Finch Brothers.
Founded by the Finch family in 1904, the store at 115 N. Citrus Ave. has a 105-year history in downtown Covina, said historian Bill Stone.
But that history could soon be a distant memory if owner Roger Gama can't find someone to take over the store once he retires.

"It would be a shame to let go and not have anyone keep the business going," Gama said.

Those familiar with the jewelry business said it felt the recession first is likely to come out of it last.

Jewelers nationwide saw their darkest days in winter, when sales were dismally low during the usually busy season, said Peggy Jo Donahue, director of public affairs for the 11,000-member Jewelers of America.

Tech savvy jewelers are learning how to use the Internet and software to track demand and manage inventories, but some traditional sellers are struggling, she said.

"We've seen a lot of our older jewelers who are kind of winding down their careers," she said. "It's kind of like my father. He sold pinball and jukebox machines."

"He got out when he realized the world had changed," she said.

Gama, 65, hopes to call it quits by the end of July so that he could enjoy retirement with his wife. But so far, the business has been a tough sell as jewelers locally and nationwide begin to fold.

Nancy Sidhu, Vice President and Chief Economist for the Kyser Center for Economic Research of the Los Angeles Economic Development Corporation, said jewelry stores - like most retail stores - are suffering because of the current economic climate.

Last month, Boxx Jewelers in Monrovia closed its doors for good after 88 years of serving the community.

"The real issue most recently is that jewelry is a discretionary item, and during bad times, people have been deciding

not to buy things that they might otherwise enjoy having," Sidhu said.

And that includes the 1920s-era rings, antique pocket watches, tennis bracelets and other new and used jewelry Gama sells. Roger Gama Fine Jewelry also provides full-service jewelry services.

"It's a difficult business to sell," Gama said. "It isn't necessarily the type of business where you will be a millionaire, but you will have a steady source of income and have the opportunity to live in the community."

Gama, a Covina resident, stumbled into the jewelry business after jobs that included being a teacher, a college administrator, and as Chief of Staff for former Assemblyman William McVittie.

But after his father-in-law died unexpectedly in a plane crash nearly 30 years ago, Gama took over a wholesale jewelry store in downtown Los Angeles.

In 1990, he came across the Covina jewelry store, which was closing out. He stepped in the store looking to buy jewelry. When he walked out, he had purchased the store.

"My timing couldn't have been worse. There was a recession at that time, too. But being obstinate or foolish, I stepped in the business feet first," Gama said.

Since then, however, Gama built on past clientele and built a new customer base to create a successful business.

Today, customers revere Gama for his honesty and attention to detail.

"I trust him," said Nola Dewester, a Covina resident who visited Gama on Wednesday to fix a ring that had a loose diamond. "He's very fair, generous and nice. I don't know what I will do without him."

Stone, who is vice president of the Covina Valley Historical Society, said that Gama's retirement could mark the end of an era if he can't find a replacement.

"Since 1904, it's always been a jewelry store. It has been through many, many hands, but it is probably the only business in town that has stayed the same type of business through the years," Stone said.

Article source: www.sgvtribune.com

Prices, economy, to drain gold jewelry demand

London--Historically high gold prices and increased volatility in the market coupled with the economic downturn will have a dramatic impact on global gold jewelry demand in 2009, according to the latest Gold Survey from precious-metals consultancy GFMS Ltd.

According to the report, the average gold price increased from $695.39 per ounce in 2007 and $871.96 per ounce in 2008 to $908.41 per ounce in the first quarter of 2009.

That price could increase to a new high above the $1,000 mark, with $1,100 a "real possibility," as investors remain the principal driver of the expected next leg of the bull market, the report states.

In the medium term, however, prices could retrace from current levels: The mid to low $800s are a possible low over the rest of the year, with prices in that region most likely to be pushed up by bargain-hunting and stock replenishment, according to the report.

Ultimately, imbalances in the market suggest that sooner or later gold prices will have to retreat, but this is not likely to occur until the end of 2009 and potentially not until well into 2010 given current economic conditions, which favor gold investment.

As for supply, mine production is expected to increase by 20-30 tonnes compared with 2008 levels, with a rise in output from Asia, Australia and West Africa, the report states. Scrap has already increased substantially this year, surpassing jewelry fabrication volume, and will "almost certainly be well up year-on-year."

Looking back to 2008, gold mine production was down 2.5 percent, or 62 tonnes, compared with 2007, and scrap supply in North America was up about 10 tonnes.

Meanwhile, 2008 world gold fabrication dropped 7.3 percent, or 226 tonnes, compared with 2007, and gold jewelry fabrication dropped about 100 tonnes in India, about 50 tonnes each in Europe and the Middle East, and about 20 tonnes in North America.

Article source: www.nationaljewelernetwork.com