Luxury jewellery spending soared over 10% in May 2025, bucking the broader luxury slowdown and signalling a shift in consumer priorities. The surge in gold sales reflects rising prices, gifting appeal, and a growing perception of long-term value.
According to Citigroup’s latest credit card analysis, the US luxury goods market declined 6.8% in March and 8.5% in April year-on-year. However, jewellery emerged as the most resilient performer, climbing 10.1% year-on-year and outperforming all other categories.
The growth wasn’t solely driven by high-ticket purchases; it also reflected a broader base of buyers. Unlike luxury handbags, which relied on wealthier customers spending more, jewellery attracted new shoppers. Even within jewellery, top luxury brands saw a 2.7% drop in the number of individual buyers. Those who stayed, though, spent significantly more — up 11.7% on average.
Luxury handbags, long considered the entry point to prestige fashion, are losing appeal due to price fatigue and lack of innovation. In contrast, jewellery appeals both emotionally and financially, offering superior intrinsic value thanks to precious metals and stronger emotional value since it often marks personal milestones.
Gold’s strong performance reinforces this trend, with prices surging over 25% since January 2025. Cartier has raised prices by under 5%, making its pieces appear relatively good value despite inflation. This dynamic helps explain why jewellery brands are seeing strong demand, even from cautious consumers.
The outlook for luxury watches is mixed, with sales up 14.7% in May year-on-year but concentrated among specific models or retailers. Economic risks cloud the outlook, with US consumer sentiment remaining fragile and potential new tariffs and geopolitical tensions in the Middle East raising volatility in the second half of 2025.
Source: https://www.ibtimes.co.uk/cartier-chanel-out-jewellery-shoppers-10-high-end-handbag-sales-collapseexperts-say-gold-1737174