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ROI to Expect From a Jewelry Business

A lot of people are starting to understand that a nine-to-five isn’t really the best way to go if you want financial stability in your old age. It is not even the way to go if you want financial stability now. Your paychecks are often spent on bills and making ends meet, which is why most people can’t even save money on a monthly basis. Some resort to investments, whether that is in stocks, real estate, or any other market. Yet, a better way to go about it is by starting your own business. This gives you more control over your investment, and you stand to make a lot more money. One of the best fields to get into is the jewelry business. But what ROI can you expect?

How exactly are you going to invest in jewelry?

Before we get into numbers, you need to ask yourself first: how are you going to invest in jewelry? The type of jewelry you invest in makes a difference in what profits you stand to make and how your business will run. As explained on, your investment doesn’t even have to be in starting a jewelry business. You can invest in precious metals like gold in your individual retirement account (IRA), which is actually a pretty good way to make money after you’ve retired. Gold is definitely a better investment option than your average IRA options because it doesn’t lose value and it isn’t negatively affected by inflation. That option aside, here are some of the expected ROI numbers.


Everybody knows and loves diamonds, and they make for a great jewelry business if you have enough funds to start. Diamonds also represent one of the biggest chunks of the jewelry industry, making up for over 40% of sales. Stats show that ROI can go up as high as 47%, in studies conducted by surveying several retailers. One of the best things about this particular investment is the fact that the diamond market is pretty controlled and if you make a name for yourself, you can make a lot of money. The major mines and suppliers are known, and they control the influx of stones in the market, which is good for business because you won’t be overwhelmed by the competition. More importantly, there is always profit in diamonds, because customers can’t really tell the exact value of a stone and how flawless it is. Plus, you don’t need that many people or a huge store to run a diamond business, so there aren’t many overhead costs.

Handmade Products

Handmade jewelry has been steadily rising in popularity over the years, and people are actually quite affectionate about those personalized products and spend a lot of money on them. If you know what you’re doing and made an impression with your designs, your business could easily boom, especially, if you use quality materials. Profit margins with handmade jewelry are often between 43% and 46%. One typical challenge with this kind of jewelry is pricing. The makers often have a hard time estimating costs because the materials aren’t as expensive as diamond or gold, but the craftsmanship that goes into the making of the jewelry is significant. It takes time, but you need to come up with a pricing system that works for you, taking into consideration material costs as well as your own experience and skills.

Colored Stones

Trying to estimate ROI here is a bit challenging because the quality, size, materials, and obviously the color of those stones varies, a lot. Yet, we do know that profit margins here can be higher than even diamonds, reaching 48% and higher, if you know what you’re doing. From rubies and sapphires to tourmaline and emeralds, colored stones have plenty of potential and the possibilities are endless, so those are definitely one of the best investments out there.

Sterling Silver

jewelry is always a great investment, and ROI here is even higher than gold, reaching up to 50% and higher. There is always a market for sterling silver, and people never get tired of them. This particular type of jewelry is affordable and durable, so it is just as coveted as other types. One of the best features of silver jewelry is the fact that you can also complement the design with gemstones or even diamonds.

Factors affecting ROI

There are quite a few factors affecting this industry that you need to take into consideration before you venture into the world of jewelry. While the profits can be quite rewarding, as shown earlier, there are some risks involved, too.


The location of your jewelry business makes a huge difference in just how much money you stand to make. You cannot open a jewelry store in slums and hope you’ll get a decent ROI. You need to choose the location of your store carefully. Also, jewelers who have their stores in fairs and malls might be subject to shoplifting, so that’s something you need to take into consideration, too.

Other services

When you try to calculate your ROI, you need to consider repairs in the equation. A lot of jewelers offer free repairs and alterations to products they’ve sold, as long as it is nothing major. But, this is an overhead cost that you definitely have to consider as well.

Market fluctuations

Before you get into this business, you need to understand just what jewelry is affected by market fluctuations. Precious metals like gold, silver, and platinum are the most liable to such changes, and their prices vary throughout the years, unlike diamonds and colored stones which aren’t really as affected by market changes.

In short, you can expect a decent ROI from a jewelry business if you take all the right steps. Figure out first what kind of jewelry you want to invest in, and how. Are you going to open a store or just invest in stocks or a gold IRA? Figuring out the answer to that question will set you on the path to making significant profits.