A new report has found that American consumers spent $57.4 billion on watch and jewellery purchases last year.

The study by Research and Markets, entitled Jewelry Report, 2005 Update: The Who, What, Where, How Much and Why of Jewelry Shopping, shows that jewellery and watch purchases increased by 6.9 per cent compared to durable goods, which increased by just 4.7 per cent.

It is thought that sales are up due to the nature of the modern jewellery shopper, which the report claims is driven by the experience of buying the jewellery and the emotions felt, rather than simply the features and benefits.

The core target market for jewellery is now twenty-something and fifty-something women with higher incomes, and jewellery and watches were bought by half of US consumers in 2004.

However, Wal-Mart has proved to be the number one retailer for jewellery, a surprise since high income women from 25 to 45 years of age are the least likely to shop in this way.

The report looks at fine jewellery, the preferences and behaviours of buyers and self-purchasers and the metals used, such as platinum and fine gold.

Four key areas appear to make up the jewellery purchases: the women and men's markets for fine jewellery and watches, and for costume jewellery and watches.