Peter and Lorraine Grader had been looking for a more family-friendly place nearly half a century ago while still living on Long Island. But their quest became urgent when the watch-repair shop they owned was robbed one night - their baby, Mark, sleeping in his bassinet in living quarters behind the store.

The Graders purchased a Norwich jewelry store in 1964. At the time, 10 other jewelry stores graced downtown. Now, Grader Jewelers is one of just two remaining Norwich jewelry stores.

Mark is now grown, the owner of the family business that recently expanded into a free-standing building on the Boston Post Road across from the Waterford Post Office. The Graders also own a store in Groton, where the business has its headquarters.

"We started our first store with $350," recalls Lorraine Grader of that Long Island shop. "And we've worked our tail off ever since. It's the great American dream."

Her husband, Peter, came to America with 50 cents in his pocket, but also with solid skills, having apprenticed under a master watchmaker in Germany. She brought skills as an accountant, and together they discovered a love of jewelry.

The American dream seemed to be capped off in March, when Grader Jewelers opened its own building in Waterford after being in the town since the opening of the Crystal Mall, where the family had its first Waterford store. When their lease was up, they sought a new locale to deliver the kind of personal attention they like to offer their customers.

For 18 years, they were on Clark Lane in Waterford. But when a Realtor pointed out an old dental office on the market, Mark Grader said the decision was made quickly to purchase the building, as the Graders had been looking for their own site for years. "Our desire has always been to go to a free-standing building," he said.

But it couldn't be any building. After years in business, Lorraine Grader said that they've found location is everything; convenient parking and visibility a key ingredient for success.

The circa-1920s office building that most recently had been a dental office did not daunt them. Lorraine decided to open up the jumble of New England corners and dental cubicles into a light-infused, welcoming space that is also energy-efficient.

Suffused in the light are the blonde wood interior, gleaming glass cases, and of course, glowing gems - from diamonds to the full-throated greens of man-made emeralds.

"There's a lot of natural light," said Paula Griggs, who has worked for Grader Jewelers for 13 years.

She is one of 22 employees who work for the company.

Customers, said Griggs, have responded positively to the new locale, which Waterford store manager Larry Dahl described as cheerful.

"It's meant to be friendly and open," said Dahl, who has worked for Grader Jewelers for 28 years - coming on board right out of college, where he was a roommate of Mark's.

And even though there are other jewelers in Waterford - one right down the street - Mark Grader says the proximity is an asset, as it offers customers a chance to visit both places while shopping.

For each store, the expected customer base comes in a 15-mile radius, Grader said.

Buying a building, completing a major renovation and keeping diamonds in stock might seem improbable in this economy, but in reality, the Graders have the longevity and dexterity to

accomplish it.

People most affected by an anemic economy in the jewelry business are those with the closest connection to the goods - the suppliers, said Mark Grader. Jewelry stores such as their family's can choose not to do more purchasing, and sell what they have before replenishing their stock. They also maintain a brisk business in repairs, keeping two full-time jewelers employed, as well as a shop manager. Jewelry repair and mounting comprises17 percent of their business, said Lorraine Grader.

The price of gold is a mercurial target in this economy. On the one hand, customers can't afford as much gold-mounted jewelry. The upside is that businesses can buy gold pieces from customers and turn a profit on mismatched pieces or items they want to liquidate.

Because of the price of gold, the store has turned to more silver, and carries several lines of custom-made jewelry that is hand-forged. They also sell more platinum or white gold mounts for diamond rings to complement the silver collections.

"There is such a fabulous variety of colored gemstones that with the new economy and new metals market, we have a line of jewelry with fabulous color," Mark Grader said.

Prices begin at about $75 and run to tens of thousands of dollars. "We are conscious of what people want to spend," he said. The average price for an engagement ring is $4,000 to $6,000.

One of their most popular pieces is the "family necklace." A gemstone ring is hung from the necklace to symbolize each family member. Compliments are routinely given to women on that piece, said Mark Grader.

Jewelry, said Lorraine Grader, is not about making an investment. It is more of a sentimental decision than anything else, she noted.

"The real business is the joy you get from the piece, the sentiment that goes with it," she said.

Being flexible has been a key to the Graders' endurance. They've been downtown, when people congregated there - they went to a strip mall, and also had a presence in the mall. But now they stand alone - and maybe, in a way, have always, as they are a family business, and can operate with agility while offering a personal touch to customers.

They don't have corporate overhead, or stockholders seeking a profit range, notes Lorraine Grader. It is their family's livelihood - and passion.

"Integrity and honesty, this will always be a value that people will appreciate," she said. "We're online if that's where someone wants to be, but we are still here if someone wants a personal, pleasant experience they want to take away with them."