There are many reasons to believe that there are better days ahead for the jewellery industry; however, we must ensure that we are ready to make hay while the sun is shining.
Many people believe that economic conditions for suppliers and retailers will improve over the next year.
The US is expected to lead the way in creating a better business environment, and the hope is that the issues impacting markets worldwide will ease.
When it comes to the jewellery trade and the opal industry specifically, issues such as interest rates and cost of living pressures have impacted the middle class, and consumers haven’t felt comfortable making luxury purchases.
I hope that these optimistic forecasts prove accurate over the next year and that consumers embrace discretionary spending.
If better days are ahead, we must be prepared to make the most of them.
Word on the street
For many years, we were told that marketing, not production, was the key issue facing the opal industry. Those circumstances have changed dramatically in recent years.
The global demand for Australian opal is as strong as ever.
Consumers worldwide are increasingly attracted to our national gemstone.
In recent years, more major international brands in Europe and the US have released special collections featuring opal jewellery.
This has been helped in large part by the marketing support of programs such as Outback Opal Hunters, which has generated interest in Australia’s unique mining industry and now brings thousands of tourists to Queensland, South Australia, and New South Wales each year.
As recently as 10 years ago, a very small percentage of Australians were actively thinking about buying and wearing opal jewellery. That has changed!
Just a few days ago, I spoke with a friend who owns a retail business, and he told me that more and more people are entering his store and asking about opal.
They’ve heard about it from their friends and family, seen it on television, and want to know more.
In the not-so-distant past, this kind of thing was unheard of.
That said, we now face a new challenge: meeting the supply demands this passion has created. It is becoming increasingly difficult for our industry to do so.
It’s a complex issue; I won’t pretend to have all the answers!
The view from the ground floor shows a shortage of younger people entering opal mining as more experienced veterans of the trade retire.
Exploration and mining are costly practices, and methods such as drilling are expensive and do not guarantee results, making it harder for smaller miners to survive.
Unlike other adjacent mining industries, where large companies drive scientific advances, the opal industry is dominated by smaller independent operators.
There’s a need for more efficient and scientific approaches to prospecting, such as using satellite imaging or ground-penetrating radar, to identify areas of promise.
The industry needs greater government support, particularly in removing the bureaucratic hurdles and ‘red tape’ that prevents miners from getting to work.
Current processes, such as lease approvals and compensation agreements, can be slow and costly, which hampers production.
This issue is exacerbated by the many different ways opal mining is governed in Queensland, South Australia, and New South Wales.
A more uniform approach across these states could help the industry grow, as miners from different regions would be able to communicate and collaborate to resolve issues.
One step at a time
While increased collaboration in the opal industry would be positive, it’s a difficult objective to achieve.
I hope that the Australian Opal Centre in Lightning Ridge will be able to play a role in ensuring that this occurs.
It has the opportunity to ensure that the opal industry has a unified voice when addressing these kinds of issues.
Hopefully, it can encourage more young people to enter the industry through educational programs, especially for children living in opal mining areas!
The recent success of the Australian Opal Exhibition on the Gold Coast in August indicates that we are moving in the right direction.
The event allows buyers and suppliers to communicate face-to-face, and it’s been great to see it well-supported.
I hope that continues in the future and would encourage anyone interested to come along.
You never know who you may meet, what you may learn, and how your business may improve from an industry event like that. It’s always worthwhile to take the time to attend.
The opal industry is built around our national gemstone, which we should all be proud of.
Working towards a better future for the industry will benefit many people in many different ways.
Better days are ahead, and when they come, we must be prepared to make the most of that opportunity.
In the meantime, many complex issues must be addressed to ensure we don’t let this chance go to waste.
Name: Erik Madsen
Business: Australian Opal Centre
Position: Founder
Location: Lightning Ridge, NSW
Years in the industry: 50
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