Markets |  Jewellery | Who's Who Briefing

The Swiss watch industry has been using gold for more than two centuries with manufacture situated in and around three main centres, La Chaux-de-Fonds, Bienne and Geneva.

Beautiful gold and enamelled Jaquet-Droz vintage pocket-watch with pearl-rimmed bezel, white enamelled dial,Roman numerals, gold openworked triangle-tipped hands and centre second hands. Circa 1780, private collection.	Delicate enamel-worked caseback, featuring a blue circular guilloché (hand engraved on a rose engine) base with a spangled decorative pattern. (Credit: Montres Jaquet-Drox S.A.)

• Today, Switzerland is the world's major manufacturer of gold watches. The level of production is strongly influenced by the industry's pronounced inventory-cycle. This has resulted in annual output ranging from less than 400,000 to more than 650,000 units in the past decade. Over 575,000 units were manufactured and hallmarked in 2001, requiring close to 35 tonnes of gold (1.1 million oz).
• All Swiss precious metal watch cases must be hallmarked by the Contrôle des Métaux Précieux.

A solid, yellow gold PAMP Chronograph. (Credit: courtesy PAMP S.A.)

• The vast majority is made in 18 carat gold.
• More than half of the cases are fitted with a gold bracelet. The hallmarking of bracelets is not obligatory.
• 80% of the gold cases used in the manufacture of watches are made in Switzerland with the remaining 20% imported mainly from neighbouring Italy where they are commissioned by the Swiss watch companies. Some bracelets are also imported from Italy.
• Major gold watchmakers include Rolex, Cartier and Piaget (the latter both part of the Richemont Group).
• More than 90% of the gold watches made in Switzerland are destined for worldwide export. Although in terms of units they accounted for only 5% of overall Swiss watch exports in 2001, watches made of precious metals (which are mostly gold) represented no less than 48% of all Swiss watch exports by value that year. Deliveries abroad of gold watches rose by 15% in value terms in 2001, with major destinations being the US, Italy, Japan,and Hong Kong. US demand fell at a double-digit rate in 2001. Exports to Asia increased, including to Japan and Hong Kong. It was also a positive story across much of Europe, with growth in shipments to most countries, particularly, and for the second year in succession, the UK. The major exception to the good performance in European markets was Italy. Exports to the Middle East were also higher in 2001, in contrast to the weakness of general carat jewellery demand across the region.

• Counterfeit wristwatches made predominantly in S.E. Asia and southern Europe are estimated to account for about 10% of global value.

Source: Gold Fields Mineral Services