The Philippine jewelry-making trade has been in existence since the early 16th century. Historical records indicate that jewelry-making dates back to the late Stone Age as evidenced by bracelets, pendants and beads from that era. It is believed that skill in making jewelry has been acquired the early Filipinos from their Asian neighbors like the Chinese.
Traditionally, jewelry-making is a home based industry intended to be a source of livelihood for the family. It has become an industry worthy of government attention and support. Given proper support, the industry can contribute to national economic development by increasing the sector's export receipts and maximizing the country's position as a top producer of gold.
II. Industry Profile
Sub-sectors in the jewelry industry
Two sub-sectors comprise the Philippine Jewelry Industry. These are the fine jewelry sub-sector and the costume jewelry sub-sector. The Philippine fine jewelry industry is engaged in the production of two major product categories, namely:
precious metal jewelry; and
pearls, precious and semi-precious stones.
Precious metal jewelry refers to ornaments made of gold and silver that may or may not be mounted with gemstones. Precious metal jewelry can be in the form of rings, earrings, necklaces, bracelets, brooches, pendants, tie-pins cuff links; and decorative items such as spoons, forks; and office items such as pen and paper holders.
Precious metal jewelry made of gold is the major product of the Philippines. Silver jewelry comprise a smaller portion of the business but is steadily increasing.
Pearls, precious stones and semi-precious stones are unworked or worked pearls, cut and polished diamonds and colored gemstones such as emerald, rubies and sapphires in loose form. They vary according to size, color, cut, clarity and luster as in the case of pearls. Precious stones are defined as diamonds, emerald, rubies and sapphires with some addition of pearls. All other gems are considered as semi-precious.
Notwithstanding the availability of raw materials and the capability of local manufacturers to meet local demand, imported jewelry items still abound in the local market. Usually, these jewelry items are made of gold coming from Italy, Thailand, Singapore and Hong Kong.
No official statistics as to the size of the domestic market for jewelry exist. There is also no reliable data on how much of the locally-available jewelry are made domestically or originated from foreign sources. In 1994, De Beers places the Philippine diamond jewelry market at US $62 million. If it is safely assumed that 50% of all jewelry are made with diamonds while the other half are gold and silver set with other stones, then the market size is estimated to be around US$120 million. This can be higher considering that diamond jewelry accounts for only 20-30% of the total jewelry market In this case, the market size for jewelry in the Philippines could be as high as US$ 200 million.
There are six areas in the country where majority of jewelry manufacturing firms are located and these are Benguet, Metro Manila, Cebu, Davao, the Caraga Region, and Bulacan. The jewelry industry in the Philippines is a fragmented one composed of cottage-type small firms with little investments in new technology like modern tools and equipment.
In Bulacan, jewelry making is concentrated in the town of Meycauayan. There are about 2,000 jewelry manufacturers in the province. A local association, the Meycauayan Jewelry Industry Association, Inc. (MJIA), was formed in 1985 to oversee and assume the lead role in the development of the jewelry industry in the province. The MJIA has grown from an original membership of 37 to the current 106.
