All articles tagged with #jewelry industry
Gold prices have surged to record highs due to global economic uncertainty, recession fears, and expectations of U.S. rate cuts, causing concern among jewelry companies about rising costs and potential impacts on sales, prompting some to innovate with pricing and product strategies.
The owner of De Beers, the world's leading diamond company, saw a 20% drop in shares after announcing production cuts at its mines, as lab-grown diamonds gain popularity among environmentally conscious consumers. Lab-created gems, regarded as more ethical and sustainable, have seen a significant increase in sales, with 10% of diamonds sold in 2022 being lab-grown compared to 2% in 2018. The lab-grown variety offers a larger diamond for the same budget and avoids the environmental and ethical concerns associated with mining. However, concerns remain about the energy expenditure involved in creating lab-grown diamonds and the need for industry regulation.
Rough diamond prices have dropped as post-pandemic consumers prioritize spending on travel and dining experiences over luxury goods. The decline in prices is attributed to declining sales at jewelry counters, as consumers had excess money to spend on discretionary purchases during the pandemic. However, retailers are unlikely to adjust their in-store prices based on the rough diamond market in the short term. While a small spike in rough diamond prices is expected during the winter holidays, overall sales are predicted to decline compared to previous years. Analysts anticipate a gradual recovery of rough diamond prices in 2024, supported by promising economic indicators in the United States.