Hip Hop jewelry by definition has always been about the big and bold look. The massive curb link and rope chains with equally massive, iced out cross, skull, and other types of pendants sealed the look for this type of jewelry. The connection with rap stars like 50 cent and Nelly is obvious and this has filtered over to sports celebrities and actors as well. This has resulted in a steady growth of this type of jewelry style to incorporate the youth pop culture as well. Of course the bigger than life use of metals and diamonds means that real hip hop jewelry (jewelry using only real precious metals and gemstones) is generally priced out of this world. So do I think that our bad economy and record gold spot prices spells the demise of this style of jewelry? In a word, no, most certainly not. There are various reasons for this.
The market for hip hop jewelry is roughly divided into two types of buyer segments. One is for the “haves” who have no problems shelling out $5000 to $50,000 plus on any given day for a gold or platinum jewelry piece whether encrusted with a little bit of “bling” or totally iced out with the finest grade of diamonds. The other market is the imitation jewelry market that uses silver, steel, or some base metal set with a diamond simulant like cubic zirconia, or very low quality diamonds. These pieces can range from under a couple hundred to a couple thousand depending on the quality of diamonds or simulant, whether the metal is silver, steel, palladium or some other base metal, and most importantly, whether the piece is made by a designer, is mass produced, or is custom made for the buyer.
With these two distinct types of rap jewelry buyers one can understand that the “haves” can continue buying real jewelry in any economy even if the price of this jewelry doubles which in effect is what has happened recently. The spot price of gold three years ago was around the $600 per ounce region and now it is touching $1000 per ounce. Rap jewelry enthusiasts who are constrained by budget will opt for base metals and gemstone simulants in their jewelry. The price range for this type of jewelry will always be affordable and can be mass produced in Asia at low cost.
So this begs the question. What about the mid market for such jewelry in the range of $600 to $2500 retail? Shouldn’t this be the largest, most important price point range for real rap jewelry? We must remember that real hip hop pendants, rings, watches and the like are by definition big and bold (read heavy) and whether in gold or platinum these pieces won’t be considered “Hip Hop” unless they are weighing at least 50 grams with at least 2 carats or more of diamonds or gemstones.
The base material cost of a mass produced piece that fits these criteria is going to be in the region of $2000 to $3000 at current market prices. When you add in the production and marketing costs and the jewelers’ profit you are looking at a starting retail price point of at least $6000 for a basic piece of this type of jewelry. So in effect there is no mid market . A consumer either has $6000 or more in their pocket for a real piece of hip hop jewelry or he/she does not. Unfortunately, Jacob the jeweler and other purveyors of this type of jewelry don’t offer payment plans or anything of the sort that will allow you to secure that jewelry piece like you did your BMW X5.
Even without a mid market, real rap jewelry is doing quite well and will continue to do so unless the culture itself starts to lose its appeal with the general public and more importantly the youth culture. Real hip hop jewelry certainly will have lost customers. Rap enthusiasts who could previously afford iced out precious metal pendants, rings and earrings when gold was $600 per troy ounce and when the national economy had no major challenges most certainly will think twice and three times before shelling out $6000 for a basic jewelry piece. Nevertheless, the contraction of the middle market has been counterbalanced by the appetite of the more affluent jewelry buyers who continue to invest in additional pieces for their hip hop jewelry wardrobe.