The US gold jewellery industry is both sizeable and globally significant. But it faces a range of challenges. MARK HANNA, chief marketing officer at Berkshire Hathaway company Richline Group, the leading jewellery manufacturer in the US, believes the industry can flourish, if it adopts certain key initiatives.
The US gold jewellery market is large and globally significant. The third largest market in the world, it consumed 118 tonnes of gold in 2016, a figure that has been broadly steady over the past seven years.
That gold was worth around $5 billion last year. But the market involves substantially more than the pure fine gold content of jewellery. High quality design, marketing and branding have a material impact on gold jewellery’s contribution to the US economy. In 2013, for example, the US Chamber of Commerce estimated that fine gold jewellery sales stood at $13.4 billion. More up-to-date data is tricky to come by, but I estimate it may have increased to $14.6 billion in 2016.
The fashion-conscious US jewellery buyer is an important target customer for many fabricators around the world, with imported gold jewellery accounting for around two-thirds of US gold jewellery sales. And the modest growth in demand over recent years has supported manufacturers around the world: gold jewellery exports to the US, measured in fine gold content, grew over 30% from 2013 to 2016.
But the US gold jewellery market used to be a lot bigger. Demand peaked at 389 tonnes in 2001 and, in value terms,consumption has barely changed since 1995, with price increases just about offsetting volume declines. Considering the tremendous growth in US retail spending over the same period, gold jewellery has been a serious under performer.
Consumers feel the pinch
Income growth plays an important role in gold demand. In the US, gold jewellery demand was steady while the economy was strong, unemployment was low and incomes grew swiftly. From 1995-2006 the US economy grew at an average rate of 3.3%, unemployment floated around its long run average of 5%, and consumer confidence was buoyant. Gold jewellery demand was robust, averaging around 345 tonnes a year.
This story is from the October 2017 edition of Solitaire International.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the October 2017 edition of Solitaire International.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Banking Seminar Gives Trade Reality Check
The banking and finance seminar that took place in Mumbai alongside Signature IIJS discussed the financing challenges in securing credit facing the global trade and possible solutions. A report by Sanjiv Arole.
GJSCI Reveals Winners Of Hupari-inspired Revive Design Contest
The Gem & Jewellery Skill Council of India (GJSCI) recently organised an inter-institute design competition, Revive Design Contest, offering an opportunity for budding jewellery designers to showcase their talent while embracing ancient techniques. Those who made it through the preliminary rounds were taken to the town of Hupari near Kolhapur in Maharashtra, famous for making silver jewellery ornaments.
US Gold Jewellery – An Evolving Industry
The US gold jewellery industry is both sizeable and globally significant. But it faces a range of challenges. MARK HANNA, chief marketing officer at Berkshire Hathaway company Richline Group, the leading jewellery manufacturer in the US, believes the industry can flourish, if it adopts certain key initiatives.
Urgent Need To Upgrade Hupari Silversmiths
Hupari, a small town nestled in the Kolhapur district of Maharashtra, India, is home to nearly 25,000 silver artisans. Jewellery blogger and designer PRERNAA MAKHARIAA narrates her experience of a recent excursion to Hupari as part of the Women’s Jewellery Association (WJA) India.
gjepc conducts 50th agm in mumbai
decides to form trade disciplinary committee.
De Beers Diamond Jewellers Revamps Harrods Store
De Beers is proud to continue its legacy as the ‘Home Of Diamonds Since 1888’ with a refined new store in the Fine Jewellery Room at Harrods.
JJS Gears Up For December Show
The Jaipur Jewellery Show (JJS), the country’s largest combined business-to-business (B2B) and business-to consumer (B2C) jewellery show, will be held from December 22nd to 25th at the Jaipur Exhibition and Convention Centre (JECC) in Sitapura.
HK's 4,455+ Employees Take Part On International Yoga Day
Hari Krishna Group organised a yoga programme on 21st June 2017, International Yoga Day in its factory premises in Surat, and sales offices at BKC and SEEPZ, Mumbai.
GJEPC To Set Up IIGJ Centre In Udupi
The Gem & Jewellery Export Promotion Council (GJEPC) laid the foundation stone for a premier gem and jewellery training institute in Udupi, Karnataka, on June 16th.
US Diamond Jewellery Demand Reaches $41 Bn
Total diamond jewellery demand from US consumers increased 4.4% in 2016 to exceed $40 billion for the first time, according to industry insight data published by De Beers.
