The jewelry industry is thriving, even amidst the challenges of skyrocketing gold and silver prices and the impact of US tariffs. Despite these obstacles, brands are bullish about the American market and are expanding their reach. They're investing not only in their iconic collections and high-end jewelry but also in creating immersive experiences for their clients and the public.
Federica Levato, a senior partner at Bain & Co, highlights a shift in the industry. She believes that jewelry is benefiting from a disciplined pricing strategy, attracting customers from other luxury segments. Brands that excel in creating iconic pieces, captivating high jewelry, and offering meaningful experiences are thriving. Levato also points to a significant change over the next five years: the growing interest in jewelry as an investment asset, a trend that was previously dominated by watches but is now expanding to include all hard luxury items.
This shift positions jewelry well in a K-shaped economy, characterized by widening wealth inequality. At the lower end, entry-price jewelry offers an attractive option compared to handbags, especially with pieces under €10,000. At the top, high jewelry caters to the desire for rarity and uniqueness among high-net-worth individuals. In this polarized landscape, brands that strike a balance between cultural relevance and enduring value will thrive, especially those least tied to bridal markets.
The rise in gold and silver prices has been unprecedented. Gold, for instance, has seen a 224% increase in just over six years, with a sharp acceleration in the past year. This rapid appreciation has impacted the psychology of buying, with clients finding comfort in purchasing jewelry whose value increases over time. However, the pressure is even more pronounced in colored gemstones, with their prices quadrupling over the last 15 years.
Independent brands like Ara Vartanian have had to adapt, melting gold from existing stock rather than paying higher prices. While this shift presents challenges, it also offers a unique opportunity for both sellers and buyers to deal with products whose value is rising. This dynamic has led to creative solutions, such as the introduction of more affordable silver or titanium pieces by designers like Annoushka Ducas and Giorgio B.
US tariffs have added another layer of complexity. With the US being home to a significant portion of the world's millionaires, it has long been a lucrative market for jewelers. However, the introduction of import tariffs in 2025 has presented a new challenge. Brands like Boucheron, Jessica McCormack, and Pomellato, which have accelerated their investments in the US market, now face tariffs ranging from 10% to 50% on goods from various countries. This has forced jewelers like Ara Vartanian to rethink their strategies, including the possibility of producing pieces in the US to avoid tariffs.
The development of high jewelry, unique pieces priced from $100,000, is another driving force behind the industry's growth. Bvlgari, for example, has pioneered a year-round calendar of high jewelry events, hosting presentations and dinners for clients in key markets. This approach is a response to the increasing competition for clients' attention, with more houses entering the high jewelry space.
Beyond the business of icons and high jewelry, the industry is focusing on creating priceless experiences. Brands are prioritizing the creation of once-in-a-lifetime moments that deepen emotional connections beyond a single transaction. This has led to the assignment of dedicated sales assistants who act as personal concierges, providing privileged access to cultural events and arranging private visits to historic locations.
The investment in archives is another strategic move. Major jewelry houses have been rebuilding their archives, repurchasing their own creations from the secondary market. Archives are now active assets, used for marketing, creativity, and cultural relevance. Archival exhibitions have become a central part of luxury marketing, positioning jewelry within a broader cultural and artistic discourse. Archives also inspire creativity, with mid-tier collections drawing on historic codes to anchor new designs.
The fascination with the old is evident on the red carpet, with celebrities like Margot Robbie and Cynthia Erivo wearing archival pieces. This trend reinforces the idea of jewelry as a long-term store of creative and cultural value. With the enthusiastic response to retrospective exhibitions and the buzz generated on social media, the future of the jewelry industry seems to be rooted in its past, offering relationships and experiences that feel less transactional.
So, while the jewelry industry faces challenges, it is also experiencing growth and innovation. The future looks bright, with brands adapting to changing markets and consumer desires.
