Forget Birkin and Saddle. This is a true pillar of luxury

As the global luxury goods market reels under the weight of economic crises, inflation and changing consumer expectations, only a few sectors emerge unscathed. At the forefront of this new elite is... jewelry—durable, emotional and timeless.

For centuries, precious metals have symbolized power, durability, and unwavering value. In times of economic and geopolitical unrest, it is gold that does not lose its importance – on the contrary, it gains as a safe investment. It is no wonder that when the luxury goods market faces the most serious crisis in history, it is jewelry that emerges as the most resilient and future-proof segment of the market.

Advertising campaign for luxury jewelry Tiffany & Co./ Tiffany & Co.

The pandemic, inflation, geopolitical tensions and social changes have shaken the foundations of luxury. According to Bain & Company, the global luxury goods market will shrink by 1% in 2024. The classic pillars of the sector – fashion and leather goods – have suffered the most. The decline in product quality, while prices have risen (by as much as 50% in the last five years), has led to customer discouragement.

Against this backdrop, jewelry looks like a safe haven . The segment not only stayed afloat, but also grew by 2 percent . It seems that diamonds are not only women's best friends, but also investors'.

Advertising campaign for the luxury jewelry house, Bvlgari / Bvlgari

The jewelry market is... flexible. In the face of rising gold prices (over 25% since the beginning of the year), jewelry brands are adapting, reaching for alternative materials — titanium, platinum, colored stones, and synthetic diamonds.

In addition, brands such as Cartier and Tiffany & Co. maintain a reasonable pace of price increases – around 3% per year. All this makes the conscious consumer prefer a ring with a stone to a leather handbag .

The key to success is not only the durability of the product, but also its symbolic and emotional power . A gold ring , a silver bracelet or a necklace with a precious stone have an everlasting value – material and sentimental.

Let's agree, but we love the history of jewelry that has been in the family for generations. The thought that we can start it ourselves is incredibly tempting. In 10 years, there will be no trace of the Loewe "I told ya" T-shirt .

High jewellery giants see this potential. Jewellery houses are investing hundreds of millions in developing workshops, acquiring rare stones and creating unique collections. Tiffany & Co. , acquired in 2020 by LVMH , is expanding globally and aims to conquer the European market. In turn, at the beginning of April this year, Bulgari opened an expanded part of its Valenza factory.

This is proof that High Jewellery attracts VICs and is one of the most profitable areas of the luxury market.