Jewellery Industry Trends Analyzed
The jewellery industry is facing a big challenge. Sales are falling by more than 30%, largely because gold prices have jumped dramatically – over 70% in the last year. However, how people are buying gold is changing. They’re choosing smaller amounts of gold, often in 18-karat jewellery, to save money.
Key Points
- Gold prices are rising quickly, impacting jewellery sales.
- Consumers prefer lighter, smaller gold jewellery designs.
- Lab-grown diamonds are gaining popularity in daily wear.
- Big jewellery companies are benefiting from the trend.
- Smaller jewellery businesses are struggling with high costs.
- Investment in gold coins is still strong.
Despite the higher costs of gold, people still want to buy jewellery, especially for important events like weddings. There will be 4.5 million weddings in the second half of the year, which should still lead to a lot of sales. But, consumers are getting clever about how much gold they buy.
Lots of people are buying 18-karat gold instead of the usual 22-karat. They’re also looking for designs that use less gold, like jewellery with stones (called “studded jewellery”). This means that the total amount of money spent on jewellery is still going up, even though the amount of gold in each piece is smaller.
Also, more and more people are interested in lab-grown diamonds. These diamonds are similar to real diamonds but are made in a lab, so they’re often cheaper. Many people are choosing lab-grown diamonds for their daily jewellery.
The bigger, organized jewellery companies are doing well because they can afford to buy gold when it’s expensive. Smaller, local jewellery shops are finding it difficult to keep up, so they’re limiting the choices they offer and cutting back on new designs.
People are still investing in gold coins. Investment in gold coins is growing quickly, while sales of gold jewellery are falling. This is helping some companies to stay afloat.
“The shift in buying habits reflects a smart consumer response to rising gold prices, favoring value and design.”
