Fueled by retail price inflation, jewelry sales in the U.S. rose by a strong 7.0 percent in 2006, based on preliminary figures just released by the U.S. Department of Commerce. For the full year, jewelry sales in the U.S. were $63 billion, a solid gain over 2005’s $58.9 billion.

 

This tally of jewelry sales includes sales of jewelry and watches through all retail outlets, including specialty jewelers, discounters, mass retailers, department stores, and others.

The graph below summarizes annual jewelry sales in the U.S. since 1992.

 

Source: U.S. Dept. of Commerce

 

Much of the jewelry sales increase in 2006 came from price inflation. The price of gold, silver, and platinum surged during the year. Further, polished diamond prices rose in 2005, pushing prices up in 2006 as goods flowed into the retail distribution pipeline.

 

The graph below summarizes jewelry sales percentage gains and declines year-over-year.

 

Source: U.S. Dept. of Commerce

 

The 7.0 percent gain in U.S. jewelry sales during 2006 was exactly in line with the forecast by IDEX Online Research.

 

December Jewelry Sales Sluggish

As expected, jewelry sales slowed in the U.S. during December. This corroborates the results which many jewelers have already reported: jewelry demand weakened in December.

 

For the month of December, jewelry sales in the U.S. rose by a modest 3.6 percent, the second smallest monthly gain of the year.

 

The graph below summarizes monthly jewelry sales gains during 2006. The comparisons are based on the percentage change in monthly jewelry sales, year-over-year.

 

Source: U.S. Dept. of Commerce

More detailed jewelry industry sales, including sales by specialty jewelers, will be forthcoming over the next few weeks. As the data is released, IDEX Online Research will analyze the information and post it online.

 

Preliminary 2007 Jewelry Sales Forecast: Slowing Demand

IDEX Online Research’s preliminary jewelry sales forecast for the U.S. market calls for a sales gain in the 4.0-4.5 percent range. This is due to the prospects of a slowing economy as well as a slowdown in commodity price inflation. Based on this forecast, jewelry sales in the U.S. could reach $65.5-to-$66.0 billion in 2007.