Despite soaring gold prices, steep tariffs and rising crime, US jewellery sales continue to climb in 2025 — driven by resilient consumer demand, strong independents and a smaller but stronger retail base.
The US jewellery industry continues to demonstrate remarkable resilience in 2025, posting steady growth despite persistent headwinds including high gold prices, punitive import tariffs, labour shortages and rising crime. Fine jewellery remains one of the strongest performers in American retail, on track for another year of expansion.
“There’s a lot of doom and gloom out there, but all the metrics are pointing to a healthy picture,” said David Bonaparte of Jewellers of America (JA) during a webinar reviewing the State of the Jewellery Industry.
Jewellery and watch sales surged during the post-pandemic rebound and have since remained elevated, surpassing USD 100 billion in 2024, according to Bureau of Economic Analysis (BEA) data. That momentum has continued into 2025, with category sales rising 5% in the first 10 months of the year. While major players such as Signet Jewellers, Walmart and Amazon continue to command substantial share, it is independent jewellers who are driving incremental growth, noted Michelle Graff of National Jeweller.
According to The Edge Retail Academy, independents posted a 13% year-on-year increase in gross sales in October, recording growth in every month of 2025 except February.
The industry’s performance is particularly notable given the intensifying pressures on US retail.
At the forefront are tariffs — especially the 50% duty on jewellery imports from India, a critical challenge given India’s dominant role in global diamond processing. While Washington has negotiated exemptions with the EU and is progressing talks with Japan and Thailand, a US–India deal remains the industry’s highest priority, Bonaparte emphasised.
Despite razor-thin midstream margins, retail jewellery margins have remained stable at around 50%, even as gold hovers at $ 4,100 per ounce. Luxury consumers continue to view gold as a value-preserving investment, Graff noted. However, with some analysts predicting that gold could exceed $ 5,000 in 2026, retailers expect pricing pressures to intensify.
Two structural challenges continue to weigh heavily on the sector: rising retail crime and a widening talent shortage.
Jewellery-related crime has escalated sharply, with losses reaching $ 142 million in 2024, a 7% increase year-on-year, according to the Jewellers Security Alliance (JSA). As a result, JA has thrown its support behind the proposed Combating Organized Retail Crime Act, aimed at enhancing enforcement and protection for jewellery businesses.
Meanwhile, workforce shortages are impacting both retail and manufacturing, noted Rich Youmans of MJSA. Retailers are struggling to recruit trained sales staff, and many employees lack updated gemmological or product knowledge — directly reducing conversion and margins. In the manufacturing segment, retiring setters, casters and bench jewellers are not being replaced at the pace required, pushing MJSA to expand apprenticeships and training initiatives.
Industry consolidation continues as store counts shrink. Only 16,873 jewellery retail businesses were active in the US in Q2 2025, a decline of 13% since 2020, according to the Jewellers Board of Trade (JBT). While the base of operators is narrowing, analysts note that the remaining retailers are stronger, better capitalised and more prepared to navigate structural challenges.
As the trade approaches the critical holiday season, sentiment remains broadly positive. Tariffs, gold volatility and the role of lab-grown diamonds will dominate industry discussions in early 2026. Yet most leaders believe the market will continue to build on its elevated sales trajectory — albeit with a leaner, more competitive field of jewellers positioned to capture the gains.
Source: GJEPC
Be the first to comment