I am using smithing on my toon, since I'm playing on master and I feel the damage/defense boost is necessary. I don't like any form of grind, so I'm trying to level the skill naturally, just improving gear and crafting when necessary.
However, seems that just doing this won't rise my skill enough, and I simply hate the idea of creating hundreds of daggers. So I decided to roleplay I'm a jewelry smithing, so that I can craft jewelry and sell for a profit, rising my skill in the process.

My goal is just to be able to improve the gear I'm currently finding on the world. For example, if I find an elven bow, I would like to have enough smithing to get the elven perk and improve the bow 'twice as much'.
So, you guys think this can work? By only 'grinding' jewelry can I reach a good level on smithing to keep up with current gear?

Also, I have plenty of precious stones, but I'm having a hard time finding silver and gold ingots (seems that all jewelry requires silver and gold). Any suggestion to where look for good sources of those materials?

If you get a certain alteration spell it's very doable.

My advice if you want to roleplay a smith: make full suits of armour and sell them. The most easy way to do this is to just take every pelt you come across, and once in the town you make a full set of upgraded leather armour and sell it to the smith. But of course you can also do these things after finding mines full of ore or dwarven stuff. But if you keep doing this consistently you'll gain smithing skill quite fast even from the leather stuff by itself. It really helps that sabre tooth cat pelts and bear pelts give so much leather.

The word toon makes me angry. It sounds so stupid.

Thanks. And making leather armor can also give you good profit? I'm asking this because to not feel I'm grinding the skill for the sole purpose of leveling it, I'd like to feel I'm crafting for profit.

Transmute spell will be your bestfriend. Turns iron ore into silver ore and silver ore into gold ore. However it can't go straight from iron to gold which gets tiring fast but it's still and awesome spell.

Yeah, if you're level 31+ at smithing I'm pretty sure turning the hides you find on your travels into upgraded leather armour is quite profitable. And making stuff that requires ingots is even more profitable. If you go the light armour route, scaled armours are also a great way to make money, and on the heavy armour side making lots of dwarven armour will be very profitable (because dwarven metal ingots are so easy to get in bulk).