Striking gold in the millennial jewellery market

Millennials are aging, but what is the actual age range of this group today? That depends on the study you read. Nielsen quotes an age range of 18 to 34 years old, while the U.S. Census Bureau names 18 to 36. (This information is derived from www.nielsen.com/us/en/press-room/2017/nielsen-unveils-first-comprehensive-study-on-the-purchasing-power-of-multicultural-millennial.html and www.census.gov/newsroom/press-releases/2015/cb15-113.html.) Time Inc. says the millennial age range is 18 to 38. (Learn more by reading Joel Stein’s “The Me Me Me Generation,” published by Time in May 2013, or visiting time.com/money/5165475/millennials-all-over-the-world-are-worse-off-than-gen-xers-were-at-their-age or time.com/money/5126765/millennial-mcmansion.) Goldman Sachs reports the same. (For more, visit www.goldmansachs.com/our-thinking/pages/millennials or www.goldmansachs.com/our-thinking/pages/millennials-changing-consumer-behavior.html. More information is available at www.businessinsider.com/goldman-sachs-defines-millennials-2015-5.)

No matter which study you subscribe to, the fact remains a strong percentage of this group will turn 40 in only two to six years. While most remain unmarried, the majority of these adults are in committed relationships, considering their first home purchases, and being forced to think about their golden years. (More information is online at www.businessinsider.com/millennial-homeownership-lower-2017-6.)

In December, a MarketWatch headline said millennials are driving a “shopping revolution.” (For the full article, visit www.marketwatch.com/story/millennials-are-sparking-a-retail-revolution-thats-creating-new-winners-and-losers-2017-12-15.) Indeed, millennials are reshaping retail in many ways, offline and on, and are seeking items of value or what some deem ‘asset buys.’ In the MarketWatch article, Steve Blitz, chief economist at TS Lombard, said, “The 32-year-old is the more aggressive acquirer of assets. They are filling up their closets. Baby boomers are emptying theirs.”

Enter the asset of gold jewellery and the young, employed, and confident shopper who desires it—and makes more money each year. The World Gold Council (WGC) report, “Gold Demand Trends Full Year 2017,” released in February of this year, found “Full-year (2017) gold jewellery demand increased by four per cent; the first year of growth since 2013.” (The report is available in full at www.gold.org/research/gold-demand-trends/gold-demand-trends-full-year-2017/jewellery.)

Another gleaming point in the same report noted “demand for gold jewellery gained momentum in the final quarter of 2017, growing three per cent year-over-year to a two-year high.” A rebound in gold demand in India, the United States, and China were cited as the reason for this increase.

Positive projections were also provided by WalletHub’s 2018 Valentine’s Day survey, which yielded results very similar to or the same as the U.S. National Retail Federation (NRF) annual Valentine’s Day study. (The studies can be viewed at wallethub.com/blog/valentines-day-facts/10258 and nrf.com/resources/consumer-research-and-data/holiday-spending/valentines-day.) While both were published pre-Valentine’s Day and actual sales numbers for 2018 were unavailable at press time, each predicted jewellery was to be the top form of gift purchased (see image at right).

Beyond any holiday, as young employees’ salaries grow, their propensity to purchase gold jewellery does as well. In January, a Forbes article underlined this message, stating: “Research shows that as incomes rise, the demand for gold jewellery and gold-containing technology tends to rise as well.” (The article can be read online at www.forbes.com/sites/greatspeculations/2018/01/25/another-positive-year-ahead-for-gold-says-the-world-gold-council/#17d0193b1423.)

That noted, isn’t it time to energize the team (and yourself) by walking the walk and talking the talk?