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
Jan 15, 2025 - Gold Prices Driving Silver Jewelry Growth
- According to a recent report in The New York Times, jewelers are seeking out silver jewelry products as gold prices reached record levels. While silver costs approximately $30 an ounce, the price of gold was about $2,600 an ounce in December 2024 after peaking at $2,800 an ounce in October. The report found that some jewelry designers have turned to silver to make sizable and intricate pieces that would be cost prohibitive if made in gold. The lower cost of silver allows jewelers and consumers to prioritize design and creativity, according to one boutique jewelry store owner who has seen sales of silver items jump in 2024. According to Eric Gozenput, CEO at precious metals seller Bullion Exchanges, the shift to silver has influenced not only fashion trends but cultures such as India where buying gold jewelry is a deeply rooted tradition.
- Fewer US jewelry businesses closed in the third quarter of 2024, with 158 closing in Q3 2024 compared to 171 in Q3 2023, according to data from the Jewelers Board of Trade (JBT) reported in InStoreMag. The number of new businesses during the quarter rose to 92, compared to 68 a year earlier. The total number of companies active in the US in the third quarter was 22,699, which is nearly 770 fewer than a year ago. Retailers accounted for 17,213 of the industry, a decline of 3.2% year over year. During Q3 2024, 130 stores exited the sector, a 7% decrease from the same quarter a year ago. Of the stores that exited the sector, one went bankrupt, 27 closed due to mergers or takeovers, and 102 closed for other reasons.
- 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 declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 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, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
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