FIVE GOLDEN RINGS . . . A PAIR OF EARRINGS, A BRACELET, AND A BAUBLE WILL BE HOT ITEMS THIS CHRISTMAS.

Byline: Enrique Rivero Daily News Staff Writer

It'll be a white Christmas this year, and not because of any snow.

Jewelry is expected to be particularly big this holiday season among unusually cash-rich consumers, with sales expected to rise as much as 7 percent above last year's November-December period.

And not just any jewelry, either, but white jewelry - lots of white gold, platinum and diamonds should glitter among the tinsel and lights decorating holiday homes this year.

``Basically, it's going to be a white Christmas,'' said Ken Gassman, a retail analyst specializing in the jewelry industry at Davenport & Co., an investment research firm in Richmond, Va.

A robust economy and increased consumer confidence are the main reasons behind the expected run on the shiny pendants, rings and other high-end items.

``The economy is good and people have more money to spend in good economic times,'' said retail analyst Richard Giss, a partner with the trade retail services group at the accounting firm Deloitte & Touche LLP in Los Angeles. ``Good economic times are a good time for jewelry retailers.''

But it's not all just a matter of fatter wallets this season.

According to analysts and retailers, not only is it the season to be jolly, but it's also the season to get hitched, or make the commitment to get hitched.

Specialty jewelry stores like Los Angeles-based Robbins Bros., which has a major store in Canoga Park, typically transact a big chunk of their business during the month leading to Christmas.

``This is the most popular time of the year to get engaged,'' Giss said.

Steve Robbins, president of the five-store chain, which bills itself ``The World's Biggest Engagement Ring Stores,'' said the company generally has steady sales through most of the year. It sees a spike in December, when it typically does about 18 percent of the year's sales.

Robbins said December is a romantic time for many people.

``People like to get engaged in Christmas - families get together and people can announce their engagement,'' he said. ``I got engaged this time of year, too. A lot of people do. It's surprising.''

Still, it will be holiday gift giving that gives the industry most of its boost this season, according to analysts. Gassman expects this season's jewelry sales to rise 5 percent to 7 percent.

He sees four reasons for the boom.

First, demographics are favorable. Older consumers tend to spend more on jewelry than others, and ``aging baby boomers will step up and buy as they reach age 50,'' Gassman said.

During the 1980s, this group bought up just about every category of merchandise under the sun, with one major exception - jewelry. Its time has now come.

``That's the only major product category left for them to buy,'' Gassman said. ``It's kind of interesting, when you come to think of it.''

Second, spending on jewelry is expected to be heavy among ``new wealth'' - that is, the group of people who made money in the bull market of the past 10 years.

Third, new products such as silver jewelry for men, gold accessories like pins and other items are catching consumers' eyes.

And last, diamond producers are bumping up their promotional efforts. In fact, the larger diamonds - those of more than a carat - will be in demand.

These elements are coming together to create a particularly strong market for jewelry, Gassman said.

But why white jewelry as opposed to good old gold?

``It seems to be the fashion look that's in demand,'' Gassman said. ``I guess, after so many years of gold, they said: I want something different.''

One beneficiary of this demand should be Classic Designs, a family-owned jewelry store in the Glendale Galleria. Store manager Bill O'Brien expects a double-digit sales increase this year.

In fact, the store's already gotten plenty of traffic from consumers, with many of them spending time shopping around for just the right item before buying.

How heavy?

``At one time we had to close the front doors of our store. We can't take care of them all, so it's very good,'' O'Brien said. ``I don't do a head count but, man, there's a lot of traffic.''

SPARKLING GAINS

Jewelry sales are expected to soar 5 percent to 7 percent this holiday season as compared to last year.

November/December Retail Sales of Jewelry in Millions

1998: 11.6% gain

1992: 10.3% gain

1993: 11.3% gain

1994:9.8% gain

1998: 7% gain (x)

(x) as forecast by Ken Gassman, retail analyst at Davenport & Co.

SOURCES: United States Department of Commerce, Bureau of the Census, Ken Gassman of investment research firm Davenport & Co.

CAPTION(S):

Chart

CHART: SPARKLING GAINS (see text)

Bradford Mar/Daily News