We all like our toys and some of us are into really expensive ones. If you’re looking to diversify your portfolio, jewelry stocks can be a great addition. Unlike buying actual jewelry, these stocks don’t necessarily need to burn a hole in your pocket. You can choose how much you want to invest! If you’re not sure where to start, take a look at our list of Wall Street’s favourite jewelry stocks.
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7. Birks Group
The Birks Group is a luxury jewelry retailer headquartered in the United States’ frosty neighbor Canada. They operate a total of 59 stores spread across Canada and the United States. They have long positioned themselves as a socially responsible company and have donated to hundreds of charities and fundraising programs across North America like the Make-A-Wish Foundation and the Canadian Cancer Society (Talk about good Samaritans!) They also pride themselves on using a ‘sustainable precious metals’ approach that sources all their metals from mines that adhere to ecologically sound procedures.
6. DGSE Companies
Before 2005, these guys were known as the Canyon State Mining Corporation of Nevada (not a very good name for a jewelry store. Or any store really.) DGSE sells jewelry to two types of customers: retail customers and wholesale customers. Retail customers are small time shoppers like us. Wholesale customers are often institutions that buy jewelry in bulk. These customers bring in the big bucks for DGSE.
Wait… isn’t Etsy an eBay for handmade items? You’re correct and we’d bet you’d be surprised to know that the most popular product category is jewelry. Etsy doesn’t actually make jewelry or source precious metals themselves. They just provide a peer to peer marketplace for small jewelry stores and individual craftsmen to sell their works. It’s a model that not many people believed would work back when Etsy got started in 2005. With $110 million of revenue in 2016, it’s safe to assume that Etsy has proven them wrong.
4. The Swatch Group
This watch and jewelry manufacturer is based in Switzerland, so we know that they’re selling high quality. The Swatch Group came into being after the merger of two financially troubled companies in 1983, SSIH and ASUAG. The company isn’t running into financial troubles anymore and has established itself as the world’s biggest watchmaker. They’ve recently discovered a huge new avenue of growth in the developing economies of Asia and continue rapid expansion in those areas.
Pandora is an international jewelry store that was founded in Copenhagen, Denmark in 1982 by Mr. and Mrs.Enevoldsen. From their humble roots in Scandinavia, they expanded rapidly and now make sales in over 70 different countries. Their mission is to use their hand-finished jewelry in order to empower women to express their individuality. And their profitability is just the cherry on top.
2. Signet Jewelers
The biggest retailer of diamond jewelry has a history of hitting rough patches. Originally called the Ratner Group, the company was founded in 1949 by Gerald Ratner. In the early 1990’s after the wild success of the Ratner Group, Gerald Ratner was asked how the company was able to make so much money. His answer was probably the worst possible one. He proudly explained during a business conference that the only reason his company was able to make money was because his products were ‘total crap’. Probably not what customers wanted to hear. In the following months, the Ratner Group was forced to close over 300 stores. After that, the company was forced to restructure and rebranded itself as Signet Jewelers. Today, Signet Jewelers is in the news for poor financial performance and for allegedly discriminating in the workplace.
- Tiffany and Co.
In the stark contrast to Signet Jewelers, Tiffany and Co. has been on a strong uptrend the past year and has caught the attention of investors. Founded in New York city in 1837, its headquarters still remain in the iconic city. Tiffany and Co. advertises their sustainable mining methods that ensure their precious metals come from countries and mines that follow the least damaging procedures. They have their own chain of custody controls that follows the line of production from the mines all the way to the display window. In addition, Tiffany and Co. also raises awareness for issues such as climate change and established a foundation in 2000 for these purposes.
If you aren’t interested in jewelry stocks, check out our article on investing in mineral stocks.