Jewelry, Watch, Precious Stones & Metals Wholesalers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 6,500 Jewelry, watch, precious stone, and metal wholesalers purchase bulk quantities of merchandise from manufacturers and other intermediaries and distribute these products to retailers, ecommerce operators, jewelry stores, jewelry makers, and other businesses. The jewelry supply chain is a complex global operation that can involve numerous players, including mines, cutting and polishing centers, trading hubs, importers, trade shows, and dealers. Wholesalers may specialize in a particular product, such as loose diamonds, or offer a broad range of merchandise.

Sensitive to Economic Conditions

The jewelry, watch, precious stone, and metal wholesale industry is sensitive to changes in downstream retail activity and consumer spending, which are influenced by economic conditions.

Complex Supply Chain and Regulation

The complex and controversial nature of the jewelry supply chain has led to a demand for more transparency and increased governmental scrutiny and regulation.

Industry size & Structure

The average jewelry, watch, precious stone, and metal wholesaler operates out of a single location, employs 5-6 workers, and generates $7-8 million annually.

    • The jewelry, watch, precious stone, and metal wholesale industry consists of about 6,500 firms that employ about 34,6000 workers and generate $51 billion annually.
    • The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for about 51% of industry revenue.
    • Large companies with jewelry, watch, precious stone, and metal wholesale operations include Quality Gold, Stuller, Rio Grande (Berkshire Hathaway), and JewelryBund.
    • Large firms may be vertically integrated and have some manufacturing and/or consumer retail operations.
                                  Industry Forecast
                                  Jewelry, Watch, Precious Stones & Metals Wholesalers Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Nov 18, 2024 - Labor Costs Rise, Employment Falls
                                  • According to data from the US Bureau of Labor Statistics, labor costs increased while employment dropped for jewelry, watch, precious stone, and metal merchant wholesalers in September 2024 compared to a year ago. Employment by jewelry, watch, precious stone, and metal merchant wholesalers fell 9.3% in September 2024 compared to a year ago. Average wages for the nonsupervisory employees in the industry grew 7.5% in September 2024 year over year, reaching $29.13 per hour. Producer inflation for miscellaneous durable goods merchant wholesalers, which includes jewelry, watch, precious stones, and metal wholesalers, was up 3.8% in September 2024 compared to a year ago, according to producer price data released by the BLS. Jewelry and watch prices were 2.6% higher in October 2024 compared to the previous year, according to the Consumer Price Index. Prices for the category fell 4.6% from the previous month.
                                  • Swiss exporters are expressing concerns about president-elect Donald Trump’s proposed import tariffs for a number of industries, according to Reuters. Economists from the KOF Institute at ETH University in Zurich estimate that Swiss economic output could be reduced by up to 1% if a trade war is generated from the proposed tariffs ranging from 10% to 20%. The Swiss watch, precision instruments, food, machinery, pharmaceuticals, and appliances industries will suffer significantly from higher tariffs, according to the study. The United States is the biggest market for Switzerland’s export-oriented economy, accounting for nearly 20% of all good exports in the first nine months of 2024, per the report. Any new tariffs may take up to a year to pass through the government so impacts may not be felt until 2026.
                                  • The US jewelry, watch, precious stones, and metals wholesalers industry is projected to grow at a CAGR of 0.93% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected industry growth rate is slower than the overall economy‘s anticipated growth. The report noted that retail and wholesale trade sectors are driven by consumer spending along with business and government expenditures. Consumer confidence is expected to improve in the forecast period, which bodes well for the retail and wholesale industries. Factors that continue to limit consumer spending are lower consumer sentiment levels, higher interest levels, and elevated price levels. On a positive note, inflation is subsiding, which supports a moderate increase of real disposable income by about 1.9% in 2024 and 2.4% in 2025. Production and distribution systems have improved with many imbalances diminishing, according to the forecast.
                                  • Closures in the jewelry businesses slowed in the third quarter of 2024, according to data from the Jewelers Board of Trade (JBT) reported in JCK Online. During the three months ending September 2024, 167 companies exited the sector, down 7% from the same quarter a year ago. The total number of companies active in North America in the third quarter was 23,984, which is down 3.2% from a year ago. Retailers accounted for 18,162 of the industry, wholesalers accounted for 3,524, and manufacturers accounted for 2,298. The number of new businesses during the quarter was 113, an increase of 2.7% year over year.
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