Survey: U.S. gold jewelry sales hit record in 2005

MAY 26, 2006 - New York -- Despite rapidly rising gold prices, U.S. gold jewelry sales grew in terms of both dollar and unit sales for 2005, according to new statistics from a survey commissioned by the World Gold Council (WGC).Dollar sales grew 4.4 percent for the year to a record $17.7 billion, the strongest growth for the category since 1999, according to the study, conducted for WGC by GfK Audits & Surveys. In the fourth quarter of 2005, gold jewelry sales rose 5 percent in dollar sales.

For 2005, gold unit sales grew 4.4 percent over 2004, while the average price per unit remained constant at $76.01.Gold bracelets appeared the strongest category, with unit sales increasing 6.6 percent and dollar sales up 6.5 percent. Gold neckwear posted a 4.1 percent increase in dollar sales, the strongest growth since 1995.

Gold earrings continued their 10-year growth streak, with a 5.5 percent boost in dollar sales.Accounting for 9 percent of market share, non-store retailers showed the highest percentage increase in gold jewelry sales, with a 7.1 percent increase in sales volume (totaling $1.7 billion) and a 6.7 percent rise in unit sales.

With 49 percent of market share, traditional jewelry stores saw a 3.9 percent increase in gold jewelry sales (totaling $8.63 billion) and a unit sales increase of 3.2 percent.Mass merchants grew their gold business 5.1 percent for the year in dollar terms to $4.07 billion and 4.9 percent in terms of unit sales. For department stores, dollar sales volume rose by 3.7 percent to $3.36 billion and unit volume increased by 3.1 percent.