When it comes to jewelry as investment and spending money on jewelry, it seems that there is a divide in opinion, with age as a major factor for preference. Some members of older generations still see diamonds and jewelry as an investment to be passed on to their children. Meanwhile, those from the younger market are at a further divide. Aside from having other things to spend money on, this demographic focuses on personal experiences like those from traveling around the world. Some believe that the changing trends in jewelry have made it palatable and intriguing again, among these is the growing belief in ethical diamonds.
How Much Do Americans Really Spend On Jewelry?
America remains a contributor to the overall purchases of diamonds worldwide. This may be partly due to the belief that celebrating milestones and major achievements should be marked by significant gifts–and a favorite still remains to be the timeless diamond.
Whether you are in the older generation or the brewing younger market, it’s good to you know the jewelry spending habit of the nation. Knowing this may help guide you in your next purchase, just so you know where the pulse of the industry is at right now.
Understanding The General Market For Jewelry
Despite the seemingly stable and unchanging tune of the jewelry market, it has changed tremendously, from sourcing down to selling. The jewelry industry has been able to progress with the times, adapting to technology and ethical sourcing to appeal to a bigger market.
If one were to dissect this evolving market, it’s important to look beyond the expected target of older generations who value diamonds. The younger market may not share the same attitude towards jewelry, but their new preferences can steer the industry towards bigger opportunities for growth.
The rise of vintage stores
If you have ever asked, “How much should you spend on jewelry?” this can vary depending on where exactly one intends to make a purchase. The rise of pre-loved buying has paved the way for purchases to become more conscious and deliberate. Even if an item is previously owned, it does not lose much of its value. If anything, the likes of antiques can fetch higher price tags, once one considers craftsmanship, the origin of the jewelry material, and make.
The younger market tends to choose pre-loved for the sole reason of sustainability. Another person’s previous rings and bracelets can find a new home in another jewelry box. In some cases, pre-loved can also offer new styles that are outside of the season’s offers, another perk that younger jewelry lovers can take advantage of. Such is a trend in spending money on jewelry.
Online stores: The new way to browse
Price fluctuations and the aging majority of consumers seem to signal the dying jewelry industry. However, many who ask, “How much money is spent on jewelry each year?” realize that the market for jewelry is far from gone.
The advent of online shopping has tended to many new factors that influence jewelry sales. Younger individuals who prefer online shopping now have an avenue for convenience. At the same time, it has opened doors for newer markets to tap into different consumers. European brands can now reach American customers through global websites.
Of course, there will be challenges. According to jewelry statistics 2019, European jewelers’ sales doubled from online sales. Yet this partly came at the price of sales from physical shops.
A growth hand-in-hand with tourism
With globalization comes a boom in tourism. There are a lot of factors that can affect the market’s movement, among them the ongoing pandemic. Yet globalization is already on the rise, and tourism can immediately bounce back alongside proper spending for the economy.
Beyond the physical reach of tourism, there is also the appeal of accessing works and masterpieces that come from other locations. Jewelry enthusiasts who want to explore other styles may find what they are looking for from a fresh perspective outside of their own culture.
The Landscape Of American Spending On Jewelry
Considering the heavy connection between jewelry spending and the age of an American consumer, many might assume that the industry has a dwindling community. Yet the price fluctuations for jewelry seem to still stabilize on a high note.
In a report by edahngolan.com, jewelry prices saw a 7% increase in 2018, a trend that is predicted to continue even in later years. For that same year, Americans spent a record of $80 billion on jewelry and watches alone. This did not dwindle significantly in 2019, as 80% of the total spending of $68.58 billion was still dedicated to jewelry.
Who buys the most jewelry?
As an industry, the jewelry department continues to encounter fluctuations. For the most part, the older generation of jewelry enthusiasts still makes up the majority of the demographics of jewelry buyers.
So if it’s a question of “Who buys the most jewelry?” then the most common denominator would be those in their mid-50s to mid-60s. These individuals are those who are in urban homes, predominantly single, or have the money to afford jewelry purchase and collection.
The majority of jewelry buyers, however, are still those with the means to have an investment outside of common financial options. Individuals who spend an average of $1,600 on bling tend to be jewelry collectors. Compared to the average American household spending, this is considered triple their spending power, making them the perfect customer base for luxuries like jewelry.
The way this demographic has been spending money on jewelry also suggests that they may have attained higher educational achievements. This is not surprising, considering the need for higher salaries to be able to afford jewelry as an extra layer of investment.
The least-likely jewelry buyers
On the other side of the spectrum lies the potential for the industry’s growth. This are in the hands of the current least-likely to be jewelry spenders. Research suggests that the least-likely jewelry spenders fall in the 35 to 44-year-old category. Individuals in this bracket tend to be married and have a budding family. This demographic tends to focus on other investments, specifically in laying the foundation for their family.
They may want to focus on getting a good house, giving good education to their kids, and making investments for their future. This stops them from having a more major role in the luxury segment.
Still, this does not mean they cannot be a good market in the long haul. Jewelry has long been a staple for fashion. For the younger market, it needs to be more sustainable so it can be an extension of their investment in the future.
Ethically Sourced Jewelry: A Growing Market?
This is where ethically sourced and created jewelry steps in. Moving outside of the typical image of the jewelry buyer, the movement towards ethical jewelry has been on the fast lane. More people have started to explore ways where they could feel guiltless in spending on luxuries because they also help the environment and certain groups in doing so.
What age group buys the most jewelry that are ethically sourced? Experts and surveys show that this is the younger market segment. They are predominantly members of the Gen Z who are anywhere between 18 to 22 years old. Some millennials also tend to embrace this new trend. Not only do they have a more independent lifestyle, but they now have stronger buying power. More importantly, they also heavily invest in the future of sustainability, which is in line with this new thrust of the industry.
These buyers prefer a more environmentally-friendly and sustainable way of mining diamonds and other jewelry materials. They have been raised with the awareness of the growing issue of sourcing certain products and materials from the finite resources of the Earth. This may be one key reason why they still struggle to become regular customers. Ethically sourced and made jewelry still remains part of the industry, and not the majority of the spending practices.
What the Gen Z are looking for in jewelry
To create an overall better market for jewelry, jewelry makers need to constantly adapt to the needs of the potential market. If some younger customers have the mindset of asking, “Is jewelry a waste of money?” then it might be a matter of perspective. Once this becomes the main practice rather than a temporary trend, it may even become the starting point for older jewelry buyers to also see the value in ethical jewelry.
The conscientious buyer
Previously, most buyers were more concerned with the 4Cs when purchasing diamonds. The younger market has put a burgeoning issue to the fore: the ethical origin of their jewelry.
For the younger market, the best purchase would be a holistically ethical creation process for the jewelry. This means the use of ethically sourced stones and metals, as well as an ethical process of creation for its artisans. As such, companies may need to be more straightforward in communicating the origin and supply of their materials. This can definitely become one way to catch the eye of the younger market.
The need for trust
As online buying becomes the norm, the preference for sources now becomes a necessity. Some buyers find it hard to buy online because they cannot see and feel the jewelry piece beforehand. Others prefer a trusted brand, but the atmosphere of an online purchase makes it hard to establish rapport with the customer.
Because of this lack of opportunities for brands to make a mark on consumers, findings show that gold and jewelry tend to have fewer sales online. Brands and sellers, especially for fine jewelry, will do well to establish a customer base. Reputation can be a very big factor, whether it’s by word of mouth or by a personal experience, in using an online platform.
A seller’s reputation may also be the key difference in establishing trust for online transactions. Jewelry companies should provide renders and images of the product to avoid issues upon delivery.
Some consumers may need proof of the item before they can purchase, which is not always easy to come by with online transactions. This means that the seller’s reputation becomes their main bond with the buyer. Not only will brands need to set themselves apart from others, but they also need to make sure that they are able to deliver on the brand’s promise.
A change in taste
Though timeless pieces tend to become yearly favorites, changing tastes also lead to newer styles in the industry. For the younger market, the rose gold and white gold variants have become all-time favorites. They consider yellow gold to be a flashier metal type, despite it being a timeless classic. Millennials and the younger buyers favor the understated brilliance delivered by white gold or silver.
Rose gold continues to be a new favorite because of its young, romantic charm. Most jewelry buyers pair it with the rose quartz. However, its popularity has also made it a favorite precious metal for other stones. This further solidifies its appeal in the market.
These new players—whether in the metal or the precious gem department—tend to create variety in the options out there. For jewelry makers, this should be seen as a good thing. Far from being a staple and struggling industry, jewelry continues to blossom by creating new favorites and keeping old ones on the sidelines for when new trends come up.
The Future Of Jewelry
Even with unpredictable changes happening to the current landscape of the jewelry industry, one thing remains clear. Change can be seen more as a challenge for growth. Mid-market jewelers are seeing the heat from niche markets and bespoke brands.
As could be expected from a thriving industry, this suggests that market competition can further refine processes and even explore new ways to expand the industry. Change does not have to be seen as a bad thing for jewelers, as it can usher in interesting developments and evolution in craftsmanship.
Taking advantage of special occasions
One thing that almost never changes when it comes to jewelry trends is the power of occasions over spending. In the US market and beyond, many individuals still see jewelry as the perfect gift for celebrating milestones.
Engagements and weddings often become a highlight in jewelry browsing and buying. Even smaller occasions like Valentine’s Day still remains a sought after season for jewelry makers. This holiday usually averages somewhere around 21% of shoppers opting to give jewelry to their significant other during this time.
Innovation remains very much alive in the context of the jewelry landscape. Jewelry has always played a big role in fashion. As such, reports have shown that the bigger fashion brands have also started exploring opportunities to tap into this market.
If you want to know more about the jewelry industry and its various innovations, read “How Modified Cut Diamonds Changed The Game of Brilliance.”
