With gold prices hitting all-time highs and branded jewellery demand on the rise
Jewellery stocks have always attracted investors due to their connection with valuable commodities like gold and diamonds. In 2025, many factors will influence the jewellery market, including gold prices, global demand, consumer behaviour, and company performance. This article explores whether now is a good time to invest in jewellery stocks, using the latest trends, data, and expert views.
Global Gold and Diamond Trends
Gold Prices in 2025
Gold prices have been climbing steadily. In the first half of 2025, gold reached record levels of nearly $2,860 per ounce, which is around 38% higher than the same period last year. This surge is mainly due to geopolitical tensions, global inflation, weak currencies, and central banks buying more gold. Some experts believe gold could soon cross the $3,000 mark. Since gold is a major raw material in jewellery, rising prices affect both costs and revenues for jewellery companies.
Diamond Market Conditions
While gold is becoming more expensive, diamonds are facing a price slump. The price of natural diamonds has dropped by around 26% from its peak in 2022. Even lab-grown diamonds have seen a massive fall—prices are down by nearly 74% since 2020. This price drop is partly due to lower consumer demand and oversupply. Companies like De Beers have reduced production and are holding back sales to stabilise prices. However, global diamond jewellery sales are expected to bounce back by around 6% in 2026.
Jewellery Industry Outlook
Global Market Growth
The global jewellery market is currently valued at approximately $371 billion in 2025. It is expected to grow to around $565 billion by 2034, with an average annual growth rate of 4.8%. This growth will be driven by rising disposable incomes, demand for luxury items, and expanding online jewellery sales.
India’s Jewellery Market
India, one of the biggest gold consumers in the world, is also seeing interesting trends. Even though high gold prices have reduced the volume of gold jewellery purchases, the overall value of jewellery consumption is still growing. Analysts expect the Indian gold jewellery market to grow by around 12–14% in the financial year 2026. Customers are now preferring lighter pieces, diamond-studded jewellery, and innovative designs, which offer higher profit margins for companies.
Company Performance – Key Players
Titan Company (India)
Titan is a leading jewellery brand in India and part of the Tata Group. Its stock is trading around ₹3,500, which is roughly 10% below its 52-week high. In the last three months, it has delivered a return of nearly 15%. For the latest quarter, Titan reported a 25% growth in its jewellery revenue, driven by strong sales of premium products and gold coins. The company plans to open 40–50 new Tanishq stores shortly and is also upgrading many of its existing stores.
Titan has strong financials. It has a return on equity of about 30% and a low dividend yield of 0.3%. While it is performing well, it is also expensive with a price-to-earnings ratio of around 93, which means investors are paying a high price for its earnings.
Signet Jewellers (USA)
Signet is one of the largest jewellery retailers in the U.S. and owns brands like Kay, Zales, and Jared. In its latest quarterly results, Signet posted better-than-expected profits and raised its full-year earnings guidance. A large part of its growth came from lab-grown diamonds, which now make up around 20% of its sales. The company is also buying back its shares, which usually supports the stock price.
Despite its strong performance this quarter, Signet’s stock is still down around 17% this year. However, investors responded positively to the recent results, and the stock rose more than 10% in a single day after the announcement.
Pandora (Denmark)
Pandora is a well-known jewellery company, especially popular in Europe and North America. The company recently reduced its growth forecast for 2025, mostly because of flat sales in Europe. Despite this, Pandora is buying back shares and has announced plans to expand manufacturing in Vietnam to reduce costs.
Richemont (Switzerland)
Richemont owns luxury jewellery brands like Cartier. The company saw its jewellery sales grow by 14% in the latest quarter. It continues to perform well in the U.S. and Europe, driven by high-end customers who are less affected by inflation or rising interest rates. Richemont’s strong global presence and luxury brand strength make it a stable choice for long-term investors.
Key Factors Supporting Jewellery Stocks
High Gold Prices
Gold’s rise increases the value of each piece sold, which helps companies grow their revenue. This benefits brands with strong pricing power like Titan and Richemont.
Consumer Shift to Premium Products
People are increasingly buying lighter but more expensive items such as diamond-studded and branded jewellery. This shift helps companies earn higher profits.
Expansion and Innovation
Jewellery companies are expanding their retail networks and investing in e-commerce. This helps them reach more customers and boost sales.
Buybacks and Shareholder Returns
Companies like Signet and Pandora are returning cash to shareholders through share buybacks, which can increase earnings per share and improve investor confidence.
Risks and Challenges
High Raw Material Costs
While high gold prices can boost revenues, they may also reduce the number of items sold as people may buy less.
Falling Diamond Prices
The falling price of diamonds may hurt companies that sell more diamond-based jewellery. It could lead to lower margins if demand doesn’t pick up.
Economic Uncertainty
Slowdowns in the global economy, higher interest rates, or new import duties can affect consumer spending on luxury items like jewellery.
Valuation Risk
Some stocks like Titan are trading at very high valuations. If growth slows, these stocks could see a sharp correction.
Is It the Right Time to Invest
Jewellery stocks are currently benefiting from strong gold prices, rising demand for branded and premium items, and company-level improvements like store expansions and share buybacks. While there are risks, especially due to high prices and economic uncertainty, the long-term outlook remains positive.
Stocks like Titan and Signet stand out due to strong brand value, consistent performance, and growth strategies. Investors looking for stable, long-term growth may find selective jewellery stocks attractive. However, it is important to keep an eye on gold price movements, changing consumer trends, and overall market conditions before making investment decisions.
For those seeking to invest in high-quality consumer and luxury brands with strong fundamentals, the jewellery sector offers promising opportunities, especially if stocks are bought during temporary dips or market corrections.
