Is There A Demand for Wholesale Fine Jewelry?
Fine jewelry can cost hundreds or thousands of dollars more than jewelry that is not made by hand from the finest metals and gemstones, even when purchasing wholesale fine jewelry. Depending on availability and current trends the demand for different types of fine jewelry can change rapidly or can be affected by the economy. Trends can also change due to money that consumers have available to spend on jewelry. Changes in demand for different metals or gemstones are also playing a role in the designs that designers are offering to the couture and mainstream consumers. The business aspect of fine jewelry is very much dependent on demand because of the amount of money necessary to keep this expensive market running.
The Effect of the Economy
Since the economic downturn in 2008, demand for fine jewelry has decreased because people, for the most part, do not have disposable income to spend to fine jewelry. The fine jewelry business has struggled since then because it is not in the best interest of wholesale companies or retail stores to carry high-end items that consumers cannot afford to buy. Though as the economy turns around, the fine jewelry business will bounce back as more consumers look for high-end items, encouraging businesses to keep them in stock again for those with disposable income.
Due to the decreased demand for fine jewelry, the wholesale fine jewelry business has suffered because retailers are bypassing the wholesalers and buying straight from the manufacturers. This method decreases the price for the retailer because it cuts out the middleman—the wholesaler. Typically a wholesaler is used to save time and money when buying products because a wholesale company is set up as a shop for the retail buyer. Purchasing directly from the manufacturer is a much bigger hassle for the retailer, but in an downturned economy they have to resort to methods that are less expensive.
When wholesale bypass occurs, some wholesale companies must close because they were not able to keep their client base during the economic downturn. Even though wholesale companies sell product at a reduced rate, they are not immune to the effects of a bad economy.
Small Businesses Sell Wholesale Fine Jewelry
One business that has grown in the past couple of years, and has helped to keep the wholesale fine jewelry market stable, is the addition of small businesses—made up of one or two people—that are buying and selling wholesale fine jewelry out of homes and at fairs. Even though there is not much business to be had from these small retailers, there has been an uptick in businesses of this sort in order to make extra money during this time of low employment.
Small businesses like this do have the opportunity to grow as the economy returns to a higher level, if they invest in more expensive jewelry. Silver, for example, is very popular because it will not lose its value. The value of silver, with the economy, might even grow. Thus small businesses who are willing to spend a little more money will be setting themselves to grow and make higher profits as the economy to a level where consumers have larger disposable incomes.
The availability of the elements to make fine jewelry can have an effect on the demand, and therefore, the price of fine jewelry. A rare gemstone is much more expensive than one that is easily mined and the price of precious metals can depend a lot on its worth within the world’s economy. Within the fine jewelry market, trends typically stay the same; though can change for the stated reasons. Following are a couple of examples.
Jade is becoming rare, which is making it significantly more popular worldwide than it used to be. Green jade, which is the most well known, is also the one most sought after by jewelry consumers and, therefore, jewelry manufacturers. As with any gem, there are levels of flawlessness and a perfect green color that accompany jadeite (green jade). So if you are looking to create jewelry with jade in it, you are in luck, as many of your clients may be trying to purchase it. However, the cost from the manufacturer will be high because of its rarity.
Of late, the price of gold has risen drastically, which has seriously decreased the demand for gold. Though 24 carat gold has continued to be particularly popular for wedding bands, lower weights have been less popular as consumers have turned to other precious metals for their jewelry needs. Gold, like jade, is becoming scarce, so it is very possible that the price of gold will never again decrease. Due to this supply problem, wholesale fine jewelry will probably phase out gold because it will become too expensive even to make and sell at wholesale prices. Gold mining is becoming increasingly difficult, which makes it increasingly expensive. The demand for silver is growing because so many people can no longer afford gold, especially in quantity.
With gold’s continuingly increasing price, silver has taken over as a popular and affordable metal for fine jewelry. Silver is not yet rare, so its costs are based mostly on demand. And with such a high demand and a high supply, silver is great metal to use in wholesale fine jewelry. Silver has also been very popular with celebrities lately, which is causing an uproar from adoring fans who want similar designs. Stars have been wearing silver jewelry in bullet shapes, in long and windy rings, and studded with diamonds.
Experimenting with the versatility of silver will only grow the market for this metal. At this point, designers are really using the intricate designs and geometric shapes in silver jewelry to make a splash and interest customers in purchasing silver. Silver jewelry with gemstones are becoming a trend, as well, as it is no longer affordable to keep gemstones solely for use in gold or platinum designs. The growing popularity of silver will be a fascinating trend to watch, as it is an affordable metal being used in a luxury market.