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Although there was a decline in in-store sales during the pandemic, offering jewelry products through company-owned websites and other e-commerce platforms enabled the industry to witness good sales gradually. Despite high inflation and supply chain constraints affecting the production, the strong demand and rising consumer spending ahead of the holiday season surged the prices of precious metals, followed by jewelry lately. The global jewelry market is expected to grow at a 6.5% CAGR and reach $238.44 billion by 2026.
Jewelry stocks are known to have performed well during inflationary periods, as investors seek to invest in precious metals that act as a hedge against inflation and market fluctuations. So, both SIG and PANDY should benefit from these tailwinds in the coming months.
