As with any other industry, the jewellery market was affected by the economic crisis. As a result, there was a shift in the segments of jewellery product sales. Nevertheless, even during the crisis, jewellery industry stayed profitable and respective businesses remained confident in their future.
In the past year, in response to the new market conditions, sales have shifted towards the cheaper products – especially silver jewellery. Historically, silver was used primarily for household utensils, and now it is increasingly used in silver jewelry production.
Decline of expensive diamond sales was not particularly visible – clients who can afford to buy diamonds, buy them despite the crisis. The decline mostly occurred in the central niche.
Every crisis comes to an end – its a matter of time until the demand for jewelry returns to its previous level. The situation today has already improved since 6 months ago.
It is expected that the gold jewellery prices will keep on increasing – the growth of consumer demand alone will drive it up. Jewellery prices are mainly dictated by the price of spot gold. The tendency to reduce product prices to maintain sale volumes does not apply in the gold jewellery business. In the times of economic crisis jewellers could not reduce their prices, narrowly avoiding operating at a loss.