UNITED STATES—This article will go into great length on pricing challenges that exist in the jewelry industry. Many people are astounded by the prices they see on some small rings and earrings they sometimes see, making them believe that jewelry shops are putting gigantic margins as well as many other fallacies that are widely popular. There are many new and intriguing parts that comprise the price for jewelry.
Generally speaking, the entire jewelry market may be divided into three major divisions that have their own unique pricing characteristics.
Upper Premium. This is the most expensive and sophisticated of the jewelry categories. Jewelry of such class is produced by world-renowned names such as Tiffany and Cartier. Every woman wishes to own at least one piece in her collection from these brands. Some lesser-known firms try to enter this market too. They are incorporating enormous natural precious stones and expensive precious metals, but the quality and sophistication is often falling short. In this pricing bracket, the most decisive factors are decided by two elements. The cost of precious gemstones and the aesthetic worth of a product that is mostly defined by the name of the company that crafted the jewelry.
Premium. This market category includes of jewelry made of gold and natural precious stones in medium sizes. The price is dictated more by the cost of precious gemstones and metals rather than the artistic value of the piece. This area accounts for around ten percent of overall jewelry sales slight being ahead of upper premium one.
Mass market. Most jewelry sold in basically every country is dominated by the mass market, accounting for around eighty percent of total sales. This comprises all cheap pieces, as well as medium and large-sized gold jewelry, which are priced in accordance with the value of the precious metal used in their production. The creative value of mass-produced jewelry is not recognized by the market and in their price, which can be seen by how they are crafted. Some companies like MoissaniteCo can show the mass market jewelry looking like premium pieces because of the usage of modern material like moissanite stones. First and foremost, we must shatter the notion that some mass-market jewelry bear increased costs because of its elegance or artistic beauty. If we will look at the meaning of artistic value, we will see that it is a set of unique aspects, attributes, and characteristics. As you might already understand, any mass market jewelry does not have any of such qualities. Despite the fact that they have an aesthetic appeal, there is definitely no social or cultural worth.
The super-premium market category has the highest price since it is the most exclusive, but there is not much reason to talk about it as it only accounts for one percent of jewelry sales, but it definitely creates the biggest fuss with multimillion right and pendants auctioned now and then. In this category, the creative, social, and historical worth of jewelry is the most important thing. Yes, this artistic evaluation is very difficult and subjective. The price as well as the types of super premium jewelry sold shifts gradually in response to market situations, fashion, and popular culture.