Company says bangle and gold bracelet sales are soaring once again.
Jewellery manufacturer and distributor Stubbs & Co. has reported to Professional Jeweller a rise in unbranded gold jewellery sales in the first half of 2014.
The Hatton Garden business has reported a 27% rise in unit sales of unbranded gold designs in the first six months of the year, linking this increase to the ease in gold price.
Stubbs & Co. managing director David Shem-Tov said: “While sales of unset gold earrings and pendant chains have remained resilient during the downturn in gold sales over the last few years it was sales of bangles, bracelets and necklets that were most impacted. In the [recent] months we have seen sales of bangles and bracelets soaring. Tellingly, our sales value increase exceeds the average decline in the price of gold.”
According to Shem-Tov, the business’ sales value has risen by 17.4%, despite an average decline in the price of gold over the same period of approximately 15%.
He adds: “The traditional part of our business is the importation and distribution of gold jewellery. With the high gold prices in recent years, the importing operation [took] a backstage to our bridal manufacturing operation here in the UK. Assay figures in recent years have backed this decline.
“Nevertheless, as gold price has eased, we have noticed a resurgence of interest in gold jewellery in the past 12 months. Unit sales of gold jewellery excluding wedding and bridal rings has risen against the corresponding month of the previous year every month from August 2012.”
Shem-Tov says a number of retailers have been proactive in taking advantage of this trend, bolstering demand for classic gold jewellery designs. The company now plans to showcase a wider range of unbranded and classic gold jewellery at IJL at Olympia in August.
Recent gold demand trends data for the UK, as compiled by the World Gold Council, revealed UK demand for the yellow metal climbed by 3.5 tonnes in Q1 2014 with a value of $143 million (£85m), up 29% on Q1 2013’s total tonnage of 2.7 tonnes.