Rising Gold Prices Reshape Jewelry and Watch Market

Luxury demand remains strong despite economic challenges, with shifting consumer preferences and competition from other sectors.

The jewelry and watch industry is seeing higher price points due to a significant rise in gold prices, with gold now costing double what it did five years ago.
While overall sales volumes are slightly declining, consumers are opting for higher-quality, more expensive items, including simple designs featuring real diamonds.
Luxury watches priced above €5,000 continue to see stable demand, although some top brands face occasional supply chain issues.
Post-pandemic lifestyle changes, such as increased spending on travel, dining, and events, are creating competition for discretionary spending in the luxury market.
Despite a projected 7% revenue decline for 2024, the sector remains resilient, buoyed by previous record years and steady consumer interest in in-store shopping experiences.