The jewelry industry is defying all odds and thriving in 2026, despite the challenges of skyrocketing gold and silver prices and the impact of US tariffs. But here's where it gets controversial: this resilience is not just about surviving, it's about thriving and evolving.
Federica Levato, a senior partner at Bain & Co, believes the industry's success lies in its disciplined pricing approach, attracting customers from other luxury segments. The key, she says, is creating strong icons, captivating high jewelry, and offering meaningful experiences. And this is the part most people miss: there's a structural shift happening, with jewelry emerging as an investment asset, just like watches, but with a broader appeal.
Luca Solca, an analyst at Bernstein, describes the market as a K-shaped economy, with widening wealth gaps. Jewelry offers something for everyone: affordable pieces under €10,000 for those at the lower end, and high-end jewelry satisfying the desires of high-net-worth individuals. In this polarized landscape, the winners will be those who understand and cater to this diverse range of consumers.
Now, let's talk about the rising gold and silver prices. The gold price has seen an unprecedented surge, with a 224% increase over just six years. And the acceleration in the past year is even more astonishing, with a 147% surge. Charlie Betts, founder of Single Mine Origin, explains that this strength is due to various factors, including geopolitical uncertainty and investment demand. Central banks have been major buyers, with over a thousand tons purchased annually since 2022, led by China, Türkiye, and India.
For jewelry brands, this rapid appreciation has changed the game. Jean-Christophe Babin, chair of Bvlgari, says clients are drawn to the idea of an investment that appreciates over time. But the pressure isn't just on gold; colored gemstones have seen a fourfold increase in price per carat over the past 15 years, while diamonds have remained stable.
Independent brands like Ara Vartanian feel this shift acutely. Vartanian had to melt gold from existing stock to adapt to the higher prices. But he sees a silver lining: both sellers and buyers are comfortable with products whose value increases. Annoushka Ducas, founder of her eponymous brand, has had to rethink pricing, sourcing, and design strategies due to gold inflation. She aims to create pieces that use gold intelligently while maintaining a sense of generosity.
Some brands have turned constraints into opportunities. Roxanne First launched Bubblegum by RF, a customizable pendant collection with prices ranging from £45 to £12,000. Sheherazade Goldsmith, founder of Loquet, moved upmarket, adding a premium 18-karat gold line. Others, like Giorgio B, experimented with titanium in sculptural pieces.
US tariffs have presented a fresh challenge. The US, home to 40% of the world's millionaires, has been a jewelers' paradise, but the introduction of import tariffs in 2025 has changed the game. Brazilian designer Ara Vartanian has been hit twice, with tariffs on his Brazil-made jewels and counter tariffs on his Canadian clients buying in Miami. The 50% import tariff on jewelry made in São Paulo has forced him to rethink his business strategies.
European brands face a lower 15% duty, but for independent maisons like Messika, the equation is more complex. Jean-Baptiste Sassine, CEO of Messika, sees the US as their top priority, aiming to double their market share in the next five years. To protect their business, they've chosen to absorb additional costs, despite the impact of rising gold prices.
High jewelry is a key driver of growth in the industry. Bvlgari's Babin says the brand has moved away from a single high jewelry season to a year-round calendar of events. Other brands like Cartier, Boucheron, and Chaumet follow a similar approach, staging high jewelry presentations in various markets. This strategy is a response to growing competition and the need to create unique, priceless moments for top clients.
The experience is becoming a crucial aspect of the luxury sector. Bain's Levato explains that ownership alone is no longer enough; brands are creating once-in-a-lifetime experiences to deepen emotional connections. Bvlgari's Babin sees this as a return to the profession's roots, where jewelers were trusted partners for families.
Archives are the new future for jewelry houses. Major brands have been investing in rebuilding their archives, and this has become a strategic move. Archives are now used for marketing, creativity, and cultural relevance. Archival exhibitions, once rare, are now a central part of luxury marketing. Archives inspire high jewelry collections and mid-tier designs, and they also position jewelry within the fine art discourse.
The use of archival jewelry on the red carpet is a powerful statement. Celebrities like Margot Robbie and Cynthia Erivo have worn archival pieces, reinforcing the idea of jewelry as a long-term store of value. Achim Berg, founder of Fashionsights, argues that this practice signals the timeless relevance of heritage players.
So, what does the future hold for the jewelry industry? With its focus on experiences, relationships, and the past, it seems jewelers are finding new ways to thrive and engage with their customers. The industry's resilience and innovation are a testament to its bright future.
What are your thoughts on the state of the jewelry industry? Do you think the focus on experiences and the past will continue to drive its success? Feel free to share your insights and opinions in the comments below!
