Israel: First Half Silver Jewelry Exports Grow, Gold Jewelry Shrinks

Jewelry exports from Israel grew very moderately during the first half of the year after falling in 2005. Jewelry exports during the period totaled $165.9 million, an increase of two percent over 2005.

Silver jewelry exports leaped 58 percent to $13.3 million from $8.4 million during the first half of 2005. In 2004 exports stood at $5.7 million. Fashion jewelry also saw continued growth, totaling $19.3 million during the period, up 35 percent from $14.4 million in 2005 and $10.6 million in the first six months of 2004.

The tide however turned on gold. Diamond and semi-precious set gold jewelry grew a mild 2.5 percent to $60 million from $58.27 million in the first half of 2005, a heavy dip from the $63.7 million exported in 2004.

Gold jewelry exports dropped 11 percent to $73.3 million from $81.3 million in the first half of 2005. In 2004 exports totaled $92.6 million.

According to Sigal Shidlovsky, director of the Jewelry Division at the Ministry of Trade, Industry and Labor, the increased cost of gold, financing problems, and continued competition from countries with lower cost of labor are harming Israeli jewelry makers.

Shidlovsky also notes slow adaptation of new marketing channels, such as selling jewelry online, by the local manufacturers.

The United States was the leading destinations of Israeli jewelry exports with 52 percent of total exports, followed by the U.K (12 percent), Switzerland (5 percent), and Hong Kong (4 percent).