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TWST: Let's turn to the jewelry industry and why investors should be looking at it today.

Mr. Gassman: We consider the jewelry industry to be hardline because jewelry purchases share the same characteristics as appliances, furniture and consumer electronics. That is, it's typically a big-ticket purchase; it's an infrequently purchased item; credit is usually involved; and the characteristics of demand are similar to those for automobiles, consumer electronics, furniture and appliances.

However, there's one particular factor that's fueling jewelry industry demand today, and is likely to continue to fuel jewelry industry demand for at least the next seven or eight or nine years: positive consumer demographics. Baby boomers are reaching their peak earnings years, and they have fewer commitments for their discretionary spending. Baby boomers are likely to spend more on jewelry now than they've ever spent at any other point in their lives, and they're likely to continue to do so between now and about 2009.

TWST: Are there any other jewelers that you would like to highlight?

Mr. Gassman: Yes, there are a couple of others we'd like to mention. First of all, Friedman's (Nasdaq:FRDM) targets that primarily low- to middle-income consumer with its strip center stores. Almost no other retail jeweler utilizes strip center stores. But Friedman's has been able to target the Wal-Mart shopper, and that's a good niche market to be in. A lot of the other jewelers have gone upscale and they don't target that lower-end consumer, so Friedman's has that market to itself.