{"id":38340,"date":"2026-10-05T14:35:36","date_gmt":"2026-10-05T09:05:36","guid":{"rendered":"https:\/\/gjepc.org\/solitaire\/?p=38340"},"modified":"2026-10-05T14:40:02","modified_gmt":"2026-10-05T09:10:02","slug":"the-holiday-test-for-diamond-demand","status":"publish","type":"post","link":"https:\/\/gjepc.org\/solitaire\/the-holiday-test-for-diamond-demand\/","title":{"rendered":"The Holiday Test for Diamond Demand"},"content":{"rendered":"

Higher prices are lifting jewellery sales as the holiday season approaches, particularly at the top end of the market. The challenge for diamond industry marketers is to turn that value growth into broader consumer demand.<\/em><\/p>\n

The diamond and jewellery industry enters the all-important fourth quarter in a better mood than it was last year, or even six months ago. However, several factors continue to temper optimism heading into the holiday season.<\/p>\n

The question is whether there is enough momentum to support growth toward the end of the year, given the current state of the market.<\/p>\n

Recent retail earnings reports suggest sales have improved, largely because higher price points have offset a decline in sales volumes. That is a net positive, since revenue remains the primary measure of company growth. But the drop in volume is a warning sign that fewer consumers are buying, or that they are purchasing fewer items on average.<\/p>\n

The industry\u2019s biggest challenge is to get more people buying jewellery, rather than relying on existing consumers to spend more as prices rise. That is the stated goal of The Diamond Collective, the former Natural Diamond Council, which unveiled its new identity in September.<\/p>\n

Growth at Higher Prices<\/strong><\/p>\n

Higher transaction values reflect inflation and the resilience of the high-end luxury jewellery segment.<\/p>\n

Jewellery prices, measured by the seasonally adjusted Consumer Price Index (CPI) for jewellery, rose 10% between January and August 2026. They were up 17% from the start of 2025, according to US Bureau of Labor Statistics data.<\/p>\n

\"\"
Source: US Bureau of Labor Statistics<\/figcaption><\/figure>\n

The sharp rise in the price of gold contributed to the increase, while jewellers also passed higher tariff costs on to consumers.<\/p>\n

Higher price points also reflect resilience at the high end of the market. Jewellery has outperformed within the luxury segment, as reflected in the latest results from Richemont, Kering and LVMH. More tellingly, commercially focused jewellery chains are also reporting growth, largely driven by higher price points.<\/p>\n

Signet Jewelers reported \u201cnice sales growth\u201d in metal pieces at middle-to-higher price points, while comparable-store sales of items priced above $2,000 rose by a high single-digit percentage. That outperformed the group\u2019s overall 2% comparable-sales growth, while fashion-jewellery sales fell 1%, reflecting weakness at lower price points.<\/p>\n

\u201cWe’re intentional around the opportunity we see at higher price points, particularly in natural diamond, both fashion and bridal,\u201d said Signet CEO J.K. Symancyk.<\/p>\n

Brilliant Earth reported a similar trend. Its second-quarter sales rose 6% year on year, driven by an 8% increase in average order value, while total orders fell 2%. The company attributed the higher average order value to a greater mix of higher-priced items and selective price increases to reflect higher precious metal costs. Lower-priced products accounted for the decline in unit volumes.<\/p>\n

High Holiday Expectations<\/strong><\/p>\n

That divide points to an uneven consumer environment. Higher-income shoppers continue to support demand for premium jewellery, while lower price points are coming under greater pressure.<\/p>\n

Overall, consumer sentiment remains cautious. The Conference Board\u2019s US Consumer Confidence Index fell 6.7 points in September, following declines in the prior two months. Consumers expressed growing concern about the cost of living and the economic outlook, while worries about geopolitics and unemployment were less pronounced than in previous months.<\/p>\n

Concern that inflation remains above its 2% target prompted the Federal Reserve to raise interest rates in September. The Fed stressed that resilient domestic spending and employment was evidence that the economy could withstand the tighter policy.<\/p>\n

The strong job market, which supports wage growth and rising household wealth, has helped sustain solid spending all year, according to Mastercard SpendingPulse. It expects the strongest holiday season in four years, projecting spending growth of 5.5% year on year through the November 1 to December 24 period.<\/p>\n

Bain forecasts 4.5% growth, which would push holiday sales above the $1 trillion mark for the first time. Deloitte offered a similarly positive outlook, while warning that consumers will remain deliberate and selective in their spending.<\/p>\n

\u201cConsumers continue to place importance on making the holidays special for their friends and families, while also making deliberate choices about how they spend,\u201d said Natalie Martini, leader for US retail and consumer products at Deloitte. \u201cAs they look to get more out of their dollars, we continue to see value-seeking behaviours across income levels, including switching among brands and retailers and using promotions to manage spending.\u201d<\/p>\n

Creating Desire<\/strong><\/p>\n

Those behaviours underline the need for the industry to give consumers a stronger reason to choose diamonds, particularly beyond the high end. But stronger spending at the top of the market, and growth driven by higher prices, should not be mistaken for a broad-based recovery in diamond demand. Neither can it be taken for granted.<\/p>\n

\"\"
A Cartier store in New York decorated for the Christmas holidays. \u00a9 Shutterstock<\/figcaption><\/figure>\n

Still, it provides an opportunity to create aspirational demand. In a keynote address at the CIBJO Congress in early September, Martin Rapaport, chairman of the Rapaport Group, urged the industry to focus its marketing on \u201cselling expensive diamonds to rich people who want to spend money.\u201d<\/p>\n

Some interpreted that as a suggestion to ignore the rest of the market, including middle-income consumers. But the idea is to strengthen diamonds\u2019 luxury image among wealthy buyers, so that commercial-quality diamonds retain their aspirational appeal to consumers further down the market.<\/p>\n

The Diamond Collective has taken a more inclusive approach, while pursuing the same goal: \u201cto create desire and turn it into demand,\u201d CEO Amber Pepper stressed in a letter to the trade.<\/p>\n

\u201cOur vision is a world captivated by the wonder of diamonds,\u201d she said. \u201cOur ambition is to put diamonds back at the centre of culture and drive demand for the category.\u201d<\/p>\n

\u201cOur North Star is simple: More people choosing natural diamonds,\u201d Pepper concluded.<\/p>\n

That is a direct response to market conditions in which sales are being driven by fewer consumers spending more per purchase. The holiday season will provide the first test of The Diamond Collective\u2019s consumer program, and of whether its message can resonate with consumers and give more people a reason to choose diamonds.<\/p>\n","protected":false},"excerpt":{"rendered":"

Higher prices are lifting jewellery sales as the holiday season approaches, particularly at the top end of the market. The challenge for diamond industry marketers is to turn that value growth into broader consumer demand. The diamond and jewellery industry enters the all-important fourth quarter in a better mood than it was last year, or…<\/p>\n","protected":false},"author":18,"featured_media":38341,"comment_status":"closed","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[107,79],"tags":[],"thb-sponsors":[],"class_list":["post-38340","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retail","category-viewpoint"],"acf":[],"yoast_head":"\nThe Holiday Test for Diamond Demand - Solitaire magazine is a International jewellery magazine - India\u2019s leading B2B gem and jewellery magazine<\/title>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/gjepc.org\/solitaire\/the-holiday-test-for-diamond-demand\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Holiday Test for Diamond Demand - Solitaire magazine is a International jewellery magazine - India\u2019s leading B2B gem and jewellery magazine\" \/>\n<meta property=\"og:description\" content=\"Higher prices are lifting jewellery sales as the holiday season approaches, particularly at the top end of the market. 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