Italy - Jewellery Briefing

Jewellery | Who's Who

Briefing

Italy is the foremost manufacturer and exporter of mass-produced and crafted gold jewellery. The country is also the largest single consumer market in Europe and the acknowledged international trend-setter when it comes to jewellery design. During the 1990s, the combined production for export and the local market averaged 456 tonnes (14.7 million oz) of fine gold annually. GFMS data shows that output hit a peak of 535 tonnes (17.2 million oz) in 1998 but has since declined, reaching a level of 478 tonnes (15.4 million oz) in 2000, due to growing competition in export markets and weaker local consumption (though the latter now appears to have stabilised). Approximately 200 million items are manufactured by Italian jewellery producers each year.

Arezzo, Vicenza, Bassano del Grappa (specialising in high tech chain products) and Valenza (specialising in fine jewellery with stones) are the leading manufacturing centres.

Of the 10,000 gold and silver production units employing in the region of 50,000 people, around 95% are family-run goldsmith workshops with just a handful of workers. Production is highly polarised with 2% of the manufacturers accounting for roughly 45% of production. A large part of the jewellery is channelled to home and export markets through 500 wholesalers, located mainly in Milan, Rome and Naples.

Chain products are a major speciality of Italian production and account for more than one-third of total output. There are several highly mechanised manufacturers who use more than 15 tonnes of gold per year, located chiefly in the Bassano del Grappa area.

Source: Gold Fields Mineral Services

Italy is the world's largest gold jewellery exporter, exporting in 2001 more than 80% of its production to virtually all countries of the world. By country, the US is the leading destination followed by the United Kingdom, Spain, France and Germany. Also important are the entrepôt markets of Switzerland, Hong Kong, Panama and, above all, the UAE. A large share of the internal European trade nowadays is carried out on a "hand-carried" basis.

Italy produces all caratages according to the requirements of the country of destination. Overall, a little under 60% of production is in 18 carat gold, with close to 25% in 14 carat.

The leasing of gold by manufacturers from bullion banks is widespread and allows the industry to cover risk and finance working stock at advantageous rates. Gold can also be supplied to the Italian manufacturer by a local bank on working account (conto lavorazione) on behalf of a foreign wholesaler.

Italy's home market, which is exclusively 18 carat, absorbed 92 tonnes (3.0 million oz) of fine gold in jewellery in 2001. It still has the highest per capita consumption in the industrialised world despite a close to 45% fall since 1992, when according to GFMS, demand peaked at 167 tonnes (5.4 million oz). The collapse in local demand was initially linked to economic and political developments affecting Italian society but has latterly been driven more by changing consumer tastes and spending patterns.

Hand finishing at Uno-e-Erre
(Credit: courtesy Uno-e-Erre)
Gold jewellery is sold by 25,000 nationwide outlets. The value of retail sales is roughly €6 bn.