M.Com. (Marketing Management) / Market potential is a decision making aid for the strategic marketing orientated manager. Jewellers can use information on market potential for planning, decision making and the overall managing of their own business. It would then be possible to develop the South African jewellery industry, to be able to deliver unique and quality products to present and potential buyers (local and foreign). The unknown need for information on the market potential of the South African jewellery industry realised into this study. The aim of this study is to develop a market potential measuring model with which the market potential of the South African jewellery industry can be determined. The model developed is based on the chain ratio method. Various measuring variables were identified and included in the model. The uniqueness of the model is based on two variables namely the willingness of buyers to purchase the product and their buying behaviour based on changes in their income (income elasticity). The above mentioned factors have a definite influence on the buying behaviour of jewellery buyers and therefore also the market potential. The research is done by identifying homogene groups of buyers and determining their buying behaviour with postal questionnaires. Personal interviews were conducted with which the South African jeweller's opinion was included in the study. The research results showed that with the market potential of the South African jewellery industry it can bring about a large amount of buying opportunities. If jewellers analised the markets in which they operate with care, they will be able to accomplish an optimal level of need satisfaction. Buyers needs will be addressed and the potential of the jewellery industry maximalised.