In a year when high-end spending was expected to roar back, something surprising happened: Americans didn’t hold back; they simply became more selective.
While handbags sat unsold and seasonal fashion lines lost momentum, one category quietly rose to prominence: jewelry. No longer just an accessory, fine pieces are now seen as meaningful purchases that carry both emotional and financial weight.
Forget the quick-turn fads. Today’s upscale buyer is choosing gold over gimmicks, and diamonds over disposable trends, making decisions based on lasting worth rather than fleeting style.
Despite early signs of a strong rebound in 2025, spending across premium goods in the U.S. has cooled. Citigroup reports that overall luxury purchases dropped during the first five months of the year compared to 2024. However, May showed relative improvement, with spending down just 1.7% year-over-year, a far smaller decline than those seen in March and April. Some iconic names, such as Hermès, even saw small gains.
Jewelry continues to outperform other segments. Since September 2024, sales have increased every month. In May alone, the category posted a 10.1% rise compared to the same period last year. It was also the only area to see growth in both the average amount spent and the number of customers, a strong signal that interest is both wide and deep.
Luxury jewelry houses have raised prices only modestly in comparison. Meanwhile, interest in handbags has slowed, with buyers pushing back against aggressive price hikes and repetitive design cycles. Watch sales remain inconsistent: overall spend rose, but leading brands saw a 10% drop.
Key Factors Influencing Spending:
- A potential return of 31% tariffs on Swiss imports, as a temporary pause nears its end.
- Ongoing geopolitical tensions (including the Iran-Israel conflict) are driving oil market volatility.
- A roughly 10% drop in the U.S. dollar’s value, impacting overseas buying power.
- Consumer sentiment remains tied to fluctuations in currency strength and stock market performance.
Jewelry’s strength during a challenging period points to changing priorities among affluent shoppers. With increased focus on purchases that carry emotional meaning and hold tangible worth, fine pieces continue to capture attention. In a market still full of unknowns, this segment stands out — not only for its sparkle but also for the confidence it inspires.
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SOURCES: CNBC
