The main consumer of the world's mined gold and diamond is jewelry industry. The world’s the annual volume of gold production is 2.5 thousand tons. The bulk of gold mined in the world is consumed by the jewelry industry. The annual volume of world jewelry industry is 146 billion U.S. dollars, including volume of diamond jewelry of 69 billion U.S. dollars. The global jewelry market is classified as follows, as shown in Figure 1.
Figure 1. World Jewelry Market
Looking for an exploratory essay definition for your paper's introduction? Take a look at article called "Writing An Exploratory Essay" at Pro-Papers for good and detailed info or even purchase your essay online.
In some countries (China, Italy, Israel, India, Thailand, Turkey, etc.), production of jewelry has a significant place in the economy.
For example, China, which 20 years ago did not have its own jewelry industry, achieved significant progress in the recent years. In the crisis of 2008 - 2009 - the turnover of the jewelry industry exceeded 14.8 billion U.S. dollars.
It is expected that in 2010 the turnover will increase in more than 10%. Exports of jewelry amounted to more than 4 billion U.S. dollars. China every year processed about 3 million carats of diamonds; the number of people employed in the jewelry industry has increased from 20,000 from the initial period of up to 2 million in 2010.
Jewelry market in India is estimated at 2.2 billion dollars in 2010. Jewelry industry in India has about 15,000 players, but only about 80 players have an income of more than $ 5 million, the potential and desire to work in this industry. Government allows to foreign capital have a share up to 51 per cent in the capital structure of the jewelry business.
Annual growth rate in the Indian jewelry industry is about 15 percent. India is the largest consumer of gold jewelry in the world, accounting for about 20 percent of world consumption of gold. There is massive demand for handmade jewelry, especially for ethnic Indian settlements elsewhere in the Middle East, Southeast Asia, the U.S. and Canada, among others.
India is the largest processor of diamonds. On the world market is sold 11 out of 12 diamonds, faceted Indian craftsmen. The processing diamonds jewelers take place in 30 countries, but in India, Belgium, South Africa, Israel and the U.S. is concentrated the largest number of masters on faceting gems.
Sales in the U.S jewelry industry totaled about $ 69 billion in 2010. About 49,542 enterprises are engaged in retail jewelry sales, total employment in this sector amounted to about 199.366 people. U.S. is the second largest consumer of gold, which accounts for 14 percent of the total gold production. One of the most popular gifts on Valentine's Day became fine jewelry, which takes the second place after the candy and chocolate. So, in 2010, 28 percent of buyers chose gold jewelry as a gift on Valentine's Day.
In Japan, there is a reduction of manufacturers of jewelry. According to the Ministry of Economy, Trade and Industry (METI), in 2008, there were 1,656 enterprise working in this sector. Employment in jewelry industry amounted to 10,528 people, industry turnover- 224,433 million yen (approximately $ 2,786 billion). Approximately 65% of enterprises employ no more than 3 or 4 employees and 1,890 people in total.
Russia occupies the 5th position in gold mining in the world, and 12th in jewelry manufacturing. The annual volume of mined gold produced in 2009 amounted to 210 tons. The production of jewelry in 2009, was 42 tons of gold, which accounted as 28% of mined and manufactured gold (As a result, the financial crisis the production volume of jewelry in 2009 declined by 36%).
Annual volume produced of rough diamond in the Russian Federation, before the crisis in 2008, was about 2.4 billion U.S. dollars. Production of diamonds sold on the domestic market of rough diamonds amounted to 940 million U.S. dollars. According to the Russian Statistics Agency, the industry consists of 1,992 Faceting enterprises. Annual processing volume of rough diamonds amounted to more than 1.8 million carats, which produced about 800,000 carats of diamonds. Annual volume of diamonds used in the domestic jewelry industry obtained from Russian raw materials is less than 5%.
According to the Russian Statistics Agency, the jewelry industry in Russia has more than 4,440 participants, including about 1,300 companies and more than 3,100 individual entrepreneurs, jewelers and more than 20,000 specialized jewelry stores. Manufacturing and trading of jewelry industry employs over 150,000 people.
The Canadian jewelry industry comprises establishments primarily engaged in manufacturing, engraving, chasing and etching jewelry, costume jewelry or tableware of precious metals and other silver products, stamping coins; cutting, slabbing, tumbling, carving, engraving, polishing and cutting of precious and semi-precious stones; recutting, repolishing and installation of precious stones; and peeling cultured and costume pearls.
Canadian industry producing jewelry and silverware (NAICS 33991) is not divided further into subsectors. Other sub-sectors of the industry are part of the Other Miscellaneous Manufacturing (NAICS 3399).
Goods included in the Jewelry Industry (NAICS 33991) are: costume jewelry (including imitation stones and pearls), cutlery, silver or silver jewelry, halloware (silver, nickel silver, pewter, stainless steel, and plated), industrial diamonds (cut and polished), jewelry and silverware (metal embossing), engraved jewelry polishing jewelry, jewelry (made of precious metals and precious stones), medals (precious or semi-precious metal) coins and pearls, pewter ware and precious stones.
Canadian jewelry market has exceeded the expectations of its projected growth over the previous three years. Shopper for fine jewelry and costume jewelry are women between the ages 20 to 50. Canadian jewelry industry has the experience in increasing sales on Valentine's Day and Christmas. An overwhelming income of jewelry companies falls on those periods.
The jewelry market in Canada is broken into two retail categories: Fine Jewelry (with precious metals and gems) and Costume Jewelry as it shown on Figure 2.
Figure 2. Canadian Jewelry Market
Both Fine Jewelry and Costume Jewelry are very popular among Canadians. For many years, costume jewelry has become a cheap alternative to fine jewelry. Costume Jewelry varies according to the trends of the season, and uses materials such as metals, leather, feathers, beads, gemstones and pearls. Figure 3 shows comparison between the preferences of consumers nowadays and a year ago.
Costume Jewelry reflects current trends, styles, materials and colours all that make people fashion for very short period of time. Its greatest advantage is that the jewelry worn people of different ages and to buy it can afford people of different income levels.
Table 1. Industry’s Trends
|Silver & Gold Jewelry||Gold & Diamond Jewelry|
|Traditional Design||Fashionable & Innovative Design|
|Marriage & Festival as Peak Seasons||Wearability and Gift|
|Jewelry sold on commodity basis||Jewelry being sold on per piece basis|
The total cost of the jewelry industry in Canada (NAICS 33991) in 2010 amounted to 1.7 billion dollars. It should be noted that there was an increase of jewelry exports from U.S. to Canada from $ 504 million in 2009 to $ 564 million in 2010. The increase in exports amounted $ 60 million. Although the increase is estimated at only 11% it is a good sign of the industry growth.
There was worldwide slowdown in economic activity in 2009. The jewelry industry in North America the small and medium businesses (as the jewelry industry consists mainly of small and medium-sized enterprises) suffered because of instability in the consumer markets and the inability to overcome the downtime due to lack of demand.
Due to the large jump in prices for gold and other precious metals during the summer of 2010, consumers began to reduce their costs and, thus, sales of jewelry were left with large stocks.
China, India, Israel and Italy are also exporters of jewelry and silverware to the Canadian market. In 2008, Canada experienced a strong growth of jewelry imports and silverware from these countries. This may have occurred due to fluctuation in the exchange rate of Canadian dollar. In the second half of 2008 the Canadian dollar decreased against the U.S. dollar. Ultimately, this led to the fact that Canadian importers had to seek new markets where the influence of the Canadian dollar was minimal in the local currency.
Have an assignment to work out a research paper on global warming? Well, you can definitely find useful guidelines on writing essays on global warming at Pro-Papers blog.
Canada has been producing diamonds since 1961. A large diamond deposit was discovered in 1999, which was located 300 kilometres northeast of Yellowknife and so the Ekati diamond mine opened. In April 2010, the volume of diamond local production is amounted to 1 million carats. In 2003, production of the precious stone has reached 11.6 million carats, in 2004 – 12.6 million carats.
Currently, Canada's diamond industry is estimated by $2.0 billion with the expected further development. Diamond polishing business is already for several years in Canada. In Vancouver, Winnipeg, Toronto, Montreal and Matane are enterprises for cutting and polishing diamonds.
In recent years, along with the metallurgical industry and mining, the diamond industry of Canada has become one of the largest manufacturers and exporters of diamond products.
Canada is highly regarded as a global supplier of diamonds. Existing diamond mines in Russia and Australia have reached their limits of production, while the northern regions of Canada are still in the early stages of their prey.
In 2007, Canada ranked the third in the world's largest producer of diamonds and the second of consumption intensity. Canadian diamonds are highly prized because they have an excellent reputation for quality, and the fact that they are "free of conflict" (i.e., when their production does not use child labor and money from their sale were not used to finance weapons for civil war).
Despite the economic downturn, mining and exploration companies continue to do business in Canada. Despite the drastic reduction of budgets and forecasts for these companies, exploration companies in Canada are still the primary recipient of the world's capital for exploration. Actual expenditures for the mining of precious stones and metals in 2009 were estimated $2.8 billion.
Canadians have a high demand for diamond engagement ring, so 85% of Canadians acquire such ring for engagement. The key factors of increasing demand for diamonds are: the growth of GDP per capita on a global scale, incomes and cultural preferences. Normally, consumption increased in the later stages of economic development in the country.
Statistics Canada reports that in 2008, Canada has a deficit of $ 166 million in its trade balance in the trade of jewelry products. Canada imported jewelry worth $ 1.78 billion, while exports totalled $ 1.61 billion.
The United States and Canada are major trading partners for the production of jewelry. In 2008, they achieved a record of trade relations, which reached more than $ 1.6 billion U.S. dollars a day, at the end of the year reflected a total of $ 596 billion s from the issue of jewelry. These figures confirm the strong presence of partners and mutually beneficial trade relationship.
United States is on the top of the developed countries from which Canada imports of jewelry and related products. Despite the fluctuations in the Canadian dollar it was the growth in Chinese imports of jewelry, as well as Canada led an increase in jewelry imports from the United States over the past five years. It was approximately 11% increase from 2007 to 2008, according to Statistics Canada.
During the last five years Canada imports from the U.S. jewelry and related products. This did not prevent by the increase in imports of Chinese gold jewelry, or fluctuations of Canadian dollar. According to Statistics Canada, the jewelry imported from the United States from 2007 to 2008 increased by approximately 11%. The share of the United States as the largest exporter of jewelry in Canada is growing.
Have no idea about the basics of comparative analysis essay writing? Academic writing may be challenging sometimes. Although, you can simply buy your paper at Pro-Papers writing service and forget about such trouble.
Many companies in 2009 would benefit from the slowdown in the Canadian economy and tried to bring Canadian consumers a downward trend of the market. But in June came the first positive data on the increase of GDP of Canada, which helped to keep this sector the presence of U.S. companies.
Many companies in 2009 would benefit from the slowdown in the Canadian economy and tried to convince Canadian consumers in a downward market trends. But in June 2010 appeared the first positive data to increase the GDP of Canada, which helped to keep this sector the presence of U.S. companies.
Leave a Reply
Your email address will not be published / Required fields are marked *