Gold prices surged 67% in 2025, creating a stress test for the global jewelry industry and exposing a sharp divide between luxury houses with strong brand equity and mass-market jewelers. According to the World Gold Council, jewelry demand fell to 1,542 tonnes from 1,887 tonnes, while value rose to $172bn from $145bn, showing consumers bought fewer but more expensive pieces.

Luxury brands largely weathered the storm. Richemont's jewelry brands grew 14% from April to December 2025, while iconic designs like Cartier's Love bracelet maintained stable pricing. Platinum is gaining ground as an alternative, with Pandora replacing most silver with platinum-plated alloy to reduce reliance on precious metals amid volatile pricing.

Independent jewelers face significant challenges amid rapidly changing gold costs, which account for up to 50% of production. Many are forced to reconsider inventory strategies, pricing models, and material choices. While some have shifted toward platinum or increased gemstone usage, others find it increasingly difficult to maintain well-structured offerings at different price points as gold prices continue to fluctuate unpredictably.