Jewelry, Silverware, and Plated Ware
SIC 3910
NAICS 33991, 339912
The jewelry and silverware industry is a prime consumer of precious stones, synthetic stones, and metals, making such goods as rings, necklaces, and earrings, as well as all types of eating utensils made of solid or plated precious metals. Some industry firms also prepare gemstones and settings for use in jewelry and related finished products. For discussion of the industry's raw materials, see also Mining, Gemstone and Mining, Metal.
The jewelry manufacturing industry remains highly fragmented, with most production being done by small companies with few, but highly skilled, employees. Several countries dominate the industry, with Italy continuing to be the world leader in terms of gold jewelry design. In the diamond trade, South African company De Beers has major control of the market, although its diamonds are sold to jewelry manufacturers around the world. China has become a major player in the industry, being the leading source of jewelry in the United States. The U.S.-based manufacturing industry continued to be plagued by declines in workforce numbers and market share, claiming the losses were due to cheaper foreign labor markets, and unfair trade practices in other countries.
The World Gold Council reported that 2004 worldwide gold demand was up 30 percent in value and 12 percent in tonnage. Positive growth was reported in the United States, Turkey, Vietnam, India, Egypt, and China. The United States was the largest market in the world, followed by Japan and Saudi Arabia. The Silver Institute also reported increased demand in 2003, with demand for jewelry silver rising more than 10 million ounces over the previous year.
Although created for adornment in North America, Korea, Japan, and Europe, jewelry continues to be purchased as a form of savings in many parts of the world, particularly in China, India and the Middle East.
By 2005, the industry continued to be dogged by problems with dirty gold and the trade of conflict diamonds. The industry was under increased pressure from governments and particularly environmental and human rights groups to better monitor its members in their purchase of precious metals and gemstones from companies and countries that did not have good environmental practices or were using their profits to fund war or terrorist efforts.
Both gold and silver are mined from open pits or, more commonly, via shafts. The shafts follow veins of the minerals and can go as deep as 12,000 feet into the earth. Mexico, the United States, Peru, and Canada are primary sources for silver ore. Silverware and hollowware are typically stamped from sheets of silver or stainless steel. Silver plate is then added for plated items. Decorative details and polishing may be done by hand or machine, depending on the quality of the materials used. Primary industry centers for producing diamond and other gem-quality jewelry are the United States, Israel, Russia, Hong Kong, Switzerland, and Belgium.
Refined gold, silver, platinum, and other precious metals are fabricated by manufacturers and made into the basic components of jewelry (e.g., links, hoops, and studs). The final production of fine jewelry is usually done partially by hand, with hand detailing. This increases value to the customer by adding the appeal of uniqueness and rarity to each piece of fine jewelry. The jewelry is often commissioned by and sold through the same store. Tiffany and Co. of New York City, one of the premier retail sellers of fine jewelry in the United States, may order a limited number of designs from a particular jewelry maker or custom design a piece for a customer.
By 2005, seven countries were producing 80 percent of the world's diamonds: Botswana, Russia, South Africa, Angola, Namibia, Australia and Zaire. De Beers and its affiliates were responsible for about 40 percent of the production, and its marketing arm—The Diamond Trading Corporation (DTC)—processed about two thirds of all diamonds by value. Processing diamonds involves sorting and valuing them into one of more than 16,000 categories based on shape, color, size and quality. Ten times per year, the DTC sells its rough diamonds at sales called "sights" to the world's leading diamantaires, the industry term for diamond cutters. The world's diamond cutters and traders are primarily found in Antwerp, Mumbai, Tel Aviv, New York and Johannesburg, with Thailand and China making inroads into the industry. Once polished, the diamonds are then sold and traded in one of 24 registered bourses (exchanges) around the world. From here the diamonds are sold to jewelry manufacturers and then retailers.
The jewelry manufacturing industry has traditionally been a highly fragmented business made up of small, family-run establishments in which jewelry-making skills are passed down within a family from generation to generation. This tradition is still common, particularly in the diamond-cutting industry. Commodity items such as chains and watch bands are usually mass-produced in factories, while jewelry boutiques make one-of-a-kind pieces to suit the individual tastes of their customers.
The jewelry market is often defined by the primary purpose for the purchase of the piece. 'Adornment jewelry' is, as the name implies, primarily bought to enhance the appearance of the wearer. Demand for this type of jewelry is greatly affected by disposable income, marketing effort and fashion trends. The cost of this type of jewelry is not always related strictly to the amount of gold or gems in it. The purchase of jewelry for adornment is primarily seen in North America, Japan, Europe and Korea. 'Value jewelry' is jewelry bought as a form of savings, although it is often worn, too. In some countries, this type of purchase is done because of an unreliable banking system, but cultural beliefs may also play a strong role in this viewpoint. India, Thailand, Indonesia, Singapore, Malaysia and the Middle East are the largest purchasers of this type of jewelry.
Most countries involved in the jewelry industry have trade organizations. Most of these organization in turn belong to The World Jewelery Confederation, also known as CIBJO—Confédération International de la Bijouterie, Joaillerie, Orfèvrerie des Diamantes, Perles et Pierres, which translates to International Confederation of Jewelery, Silverware, Diamonds and Stones. Founded in France in 1926 to promote the European jewelry industry, the organization was restructured in 1961 to be a global one. CIBJO's main mission is to protect consumer confidence in the industry. By 2005, organizations from 40 countries belonged to CIBJO, which was then headquartered in Italy.
Basic types of jewelry—rings, necklaces, bracelets, and earrings—have been evolving since humans began to indulge in self-decoration in prehistoric times. Historic eras are characterized by particular styles of jewelry depending on cultural trends, the availability of precious materials, and the prevailing technology of metalworking at the time. Many elements of jewelry style have become classic techniques that have enjoyed revivals and rediscoveries over the years. For example, filigree (delicate, lace-like jewelry made of intertwined wires of precious...
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