trong consumer demand, the introduction of new designs, and growing investor interest in jewelry stocks to hedge inflationary pressures should enable both Pandora (OTC:PANDY) and Signet (SIG) to benefit this festive season substantially. But which of these stocks is a better buy now? Read more to find out.Pandora A/S (PANDY) and Signet Jewelers Limited (NYSE:SIG) are two prominent retailers in the jewelry market. Based in Denmark, PANDY designs, manufactures, and markets hand-finished and contemporary jewelry worldwide. The company provides silver and gold, artificial stones, gemstones, cultured pearls, diamonds, enamel, glass, leather, and textile products. It operates 2,690 concept stores, 4,402 other points of sale, and eSTOREs. On the other hand, Bermuda-based SIG engages in the retail sale of diamond jewelry, watches, and other products. As of January 30, 2021, it operated 2,833 jewelry stores and kiosks.
Although there was a decline in in-store sales during the pandemic, offering jewelry products through company-owned websites and other e-commerce platforms enabled the industry to witness good sales gradually. Despite high inflation and supply chain constraints affecting the production, the strong demand and rising consumer spending ahead of the holiday season surged the prices of precious metals, followed by jewelry lately. The global jewelry market is expected to grow at a 6.5% CAGR and reach $238.44 billion by 2026.
Jewelry stocks are known to have performed well during inflationary periods, as investors seek to invest in precious metals that act as a hedge against inflation and market fluctuations. So, both SIG and PANDY should benefit from these tailwinds in the coming months.