Hi P. Lawrence,
I can't speak for all Italians and/or Catholics, but can tell you that in both sides of my family, jewelry is a very common gift for an infant. Myself, I received a watch and a gold heart necklace from my Godparents, which of course I couldn't wear until I was older. At about 9 I received a gold watch from my other Godmother for my Confirmation. Granted, it was big, but I still have it to this day.
My youngest daughter received a beautiful gold bracelet with her birthstone on it. Don't know exactly how/why that started, but it's common, in my family anyway.
TIS