Gold prices surged in 2024, reaching record highs 40 times, and the trend continued into 2025 with prices breaking new records above $2,900 per ounce. Traditionally, such high prices might discourage gold jewelry purchases, but in the United States, demand has held up better than expected, despite the cost increase.
According to a survey by Metals Focus, U.S. gold jewelry demand has remained surprisingly strong, given the record gold prices. The U.S. ranks as the third-largest gold jewelry market globally, trailing China and India, and is typically the most price-sensitive. Yet, despite gold’s rising price, demand in weight terms only dropped by about 4% in the fourth quarter of 2024.
In terms of value, U.S. gold jewelry demand reached an all-time high of $4 billion in the same quarter, as reported by the World Gold Council.
Metals Focus identified several key factors that helped sustain gold jewelry demand, including:
- A strong jobs market.
- The need to buy gifts during the holiday season, even amidst tight household budgets.
- The fact that the U.S. presidential election was out of the way for much of the fourth quarter.
- Consumers’ acceptance of higher prices.
The survey also found that there had been little change in the types of jewelry being bought. For example, consumers continued to favor 14-carat gold jewelry, with only slight movement toward less expensive 10-carat items.
However, analysts noted a shift in consumer preferences. There was a decline in sales of heavier pieces, as well as a trend toward lighter, hollow gold chains. Yet, chunky jewelry designs remain popular, and the trend of stacking rings continues to thrive.
While one might expect rising gold prices to push consumers toward silver jewelry, Metals Focus noted that this shift was not significant. Many analysts see the silver jewelry market as distinct from the gold market, with younger consumers often purchasing silver for fashion reasons rather than investment.
Silver jewelry demand in the U.S. declined by around 4% in weight terms, similar to gold. However, there was a noticeable trend toward higher-margin branded silver jewelry.
Despite strong gold jewelry demand, imports of gold jewelry fell throughout 2024. Analysts pointed out that while retail stocks weren’t necessarily low, imports, which make up part of the supply pipeline, were influenced by the rising prices. It remains to be seen if imports will bounce back in early 2025.
Silver jewelry imports also dropped sharply by about 18%, although the value of these imports rose by 6%.
Looking ahead, Metals Focus expressed caution regarding jewelry demand for the remainder of 2025. Analysts expect the industry will face challenges, even if engagement ring sales recover. Higher prices and ongoing political uncertainties could lead to a 13% decline in demand compared to the peak in 2021, potentially dipping below 2019 levels.
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