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
Recent Developments
Dec 14, 2024 - Jewelry Sales on the Rise
- Year to date, US jewelry sales have risen almost every month through November 2024, as has consumers’ average jewelry expenditure, according to a Tenoris report. Jewelry sales in the US rose 2.5% in November 2024 year over year, attributed in part to a 4.6% year over year increase in the average expenditure per jewelry item. The increase is part of a trend showing a turnaround in US demand for fine jewelry. The higher average expenditure has offset a decline in unit sales. Finished jewelry sales were up over 4% in November year over year, while consumers’ average expenditure per item was up 6.5%. Per the report, “This trend suggests that US consumers continue to harbor a deep interest in jewelry and demonstrate it with a growing willingness to invest in it.” The two best-selling jewelry items in November 2024 were chain necklaces and fashion pendants, both in the $500-600 price range.
- Consumer confidence levels increased in November 2024, improving by 2.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 111.7 in November 2024 from 109.6 in October 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “Consumer confidence continued to improve in November and reached the top of the range that has prevailed over the past two years.” Purchasing plans for homes stalled while plans to buy new cars rose slightly in November 2024 on a six-month average basis.
- 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.
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