The Outlook for the Jewelry Industry in 2011

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Image result for Jewelry IndustryThe economic instability in the United States, combined with the fluctuations in the housing market and employment rate have caused a number of industries some major problems. Some of the hardest hit included the industries specializing in luxury goods, such as the jewelry industry. However, with the economy in a state of tentative recovery, things may be starting to look up. Here, we’ll go over some of the factors that will likely come into play in 2011, as well as what they will mean for the jewelry industry’s recovery.
Because the jewelry industry, like many other luxury goods industries, relies heavily on consumers’ ability to part freely with relatively large sums of money, the thing that has perhaps been most damaging the past few years has been the loss of jobs. Job creation has begun its slow yet steady increase in the United States, yet whether it will be fast enough in 2011 to help consumers begin buying luxury goods such as jewelry again is up to debate. Company owners and stockholders (or potential buyers) are advised to keep an eye on job creation and job loss in the coming months in order to gauge how luxury goods are recovering.
The jewelry industry is closely tied to the overall American economy, and the frequency with and extent to which Americans are buying jewelry and other luxury goods is heavily dependent on the rest of the economy overall. Thus, jewelry companies would be wise to stay informed about any relevant changes in the economy, as well as how they should react to them. Job creation is particularly important, although job security is nearly as important. Employees who feel secure about their position at work are significantly more likely to invest in expensive goods, such as jewelry, than those who feel like their jobs may be at risk.
Luxury goods show all the signs of making a steady comeback, although it will likely be significantly slower than other industries. The jewelry industry has, however, had a greater degree of patronage from the wealthier citizens. However, until the middle class can afford to purchase luxury goods again, the jewelry industry’s position will be relatively unstable and subject to change. The general opinion on where the industry will go in 2011 indicates slow, unstable, yet positive growth, and one should see a careful increase in jobs in the industry as well as industry growth overall.

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