PodcastsJan 21, 2026
Episode 1: High Gold Prices, the Diamond Dilemma, & What’s Next
ColumnistsFeb 04, 2026
January Jewelry Sales: More Dollars Spent, Fewer Units Sold
Sherry Smith unpacks independent retailers’ January performance and gives tips for navigating the slow-growth year ahead.
Sherry Smith is vice president of coaching strategy and development at the Edge Retail Academy, the leading jewelry business consulting and data aggregation firm. She can be reached at sherry@edgeretailacademy.com.
The new year opened with a familiar and increasingly pronounced dynamic at independently owned and operated jewelry retailers—strong dollar growth paired with continued unit softness.
While total sales and average retail value rose meaningfully in January, overall unit volume declined for the ninth consecutive month, reinforcing a pattern that has now persisted long enough to be considered structural rather than temporary.
This divergence between dollars and units is not unique to jewelry, but it carries implications for a category where price, product mix, and raw material costs are intertwined.
Category Performance: Mix Matters More Than Ever
January’s data highlights the importance of product mix in shaping results.
— Diamonds remain foundational to total sales dollars but were not the primary contributor to higher average retail values.
— Colored stones and pearls played a more meaningful role in lifting average transaction size, reflecting continued consumer interest in differentiated, design-forward pieces.
— Precious metal-driven categories delivered mixed results, with performance often influenced as much by underlying metal prices as by consumer demand.
Growth, in other words, is not evenly distributed.
Retailers that had a strong month were those whose assortments naturally support higher average tickets, whether through design, materials, or perceived uniqueness.
Diamond Performance: A Clear Split Between Lab Grown and Natural
Within the diamond category, January data reveals a clear divergence between lab-grown and natural diamonds, with each segment contributing to overall performance in different ways.
Lab-grown diamonds delivered outsized year-over-year growth, driven almost entirely by unit expansion rather than price inflation.
— Total lab-grown diamond sales increased 23.7 percent.
— Units sold rose 22.4 percent.
— Average retail increased just 1 percent.
While total sales and average retail value rose meaningfully in January, overall unit volume declined for the ninth consecutive month, reinforcing a pattern that has now persisted long enough to be considered structural rather than temporary.
This divergence between dollars and units is not unique to jewelry, but it carries implications for a category where price, product mix, and raw material costs are intertwined.
Category Performance: Mix Matters More Than Ever
January’s data highlights the importance of product mix in shaping results.
— Diamonds remain foundational to total sales dollars but were not the primary contributor to higher average retail values.
— Colored stones and pearls played a more meaningful role in lifting average transaction size, reflecting continued consumer interest in differentiated, design-forward pieces.
— Precious metal-driven categories delivered mixed results, with performance often influenced as much by underlying metal prices as by consumer demand.
Growth, in other words, is not evenly distributed.
Retailers that had a strong month were those whose assortments naturally support higher average tickets, whether through design, materials, or perceived uniqueness.
Diamond Performance: A Clear Split Between Lab Grown and Natural
Within the diamond category, January data reveals a clear divergence between lab-grown and natural diamonds, with each segment contributing to overall performance in different ways.
Lab-grown diamonds delivered outsized year-over-year growth, driven almost entirely by unit expansion rather than price inflation.
— Total lab-grown diamond sales increased 23.7 percent.
— Units sold rose 22.4 percent.
— Average retail increased just 1 percent.
“Lab-grown diamonds are expanding accessibility and transaction volume, particularly in bridal, without materially lifting average price points.” — Sherry Smith
Growth in the category was concentrated in finished jewelry and bridal.
Lab-grown engagement ring sales were up 41 percent, number of units sold increased 34 percent, and average retail sale increased 5 percent.
Lab-grown wedding band sales were up 55 percent, units up 43 percent, and average retail was up 9 percent.
Lab-grown fashion rings sales more than doubled, increasing 147 percent, while units increased 80 and average retail grew 41 percent.
In contrast, lab-grown loose stones declined in popularity, with sales down 6.1 percent and units down 2.7 percent, reinforcing that growth is occurring at the finished jewelry level, not at the component level.
The takeaway is clear: Lab-grown diamonds are expanding accessibility and transaction volume, particularly in bridal, without materially lifting average price points.
Meanwhile, natural diamonds’ performance followed a different trajectory, with fewer transactions but a higher price per sale.
— Total natural diamond sales declined 4.3 percent year over year.
— Units fell 8.5 percent.
— Average retail increased 4.6 percent.
This pattern was consistent across core categories.
Sales of natural diamond engagement rings were down almost 14 percent and number of units sold slipped 7 percent while the average retail sale was up 10 percent.
Sales of loose natural diamonds fell 17 percent and units were down 11 percent, but average retail increased 8 percent.
While select categories of finished natural diamond jewelry, such as bracelets and earrings, showed modest sales growth, those gains were price-led rather than volume-driven.
Taken together, the data suggests natural diamonds continue to anchor price, margin, and value perception, but with meaningfully fewer transactions.
This divergence between lab-grown and natural diamonds materially explains why overall, diamond dollars can remain supported even as total diamond units decline.
“Fewer pieces are being sold, and each piece simply carries more cost.” — Sherry Smith
Nine Consecutive Months of Unit Declines
Nine months of declining unit volume is a data point that deserves careful interpretation.
While it would be tempting to view higher average tickets as evidence of more intentional or premium-driven consumer behavior, the data alone does not support that conclusion without qualification.
Higher average retail values are occurring alongside elevated precious metal prices, tariff-related cost pressures, and fewer total transactions.
In this environment, price inflation and product mix are doing much of the work, rather than an increase in the number of items consumers are choosing to buy.
Fewer pieces are being sold, and each piece simply carries more cost.
The Broader Retail Context: Slower Growth Ahead
This pattern aligns closely with broader U.S. retail forecasts.
According to Deloitte’s U.S. outlook, overall consumer spending growth is expected to slow to approximately 1.6 percent in 2026, restrained by lingering inflation, higher borrowing costs, and a more cautious consumer environment.
Importantly, Deloitte’s outlook also suggests that discretionary categories are unlikely to be the primary drivers of growth in the near term.
Jewelry, while resilient, is not forecast to be a leading growth category in a slow-growth retail environment, a reality that helps contextualize persistent unit declines even as dollar results remain positive.
Precious Metal Volatility and Its Retail Impact
Layered onto softer unit trends is volatility in precious metal markets.
Recent dip aside, the price of gold largely has remained elevated amid geopolitical uncertainty and safe-haven demand, while silver has experienced sharp swings that complicate pricing and inventory decisions.
Rising metal prices are increasing costs across the jewelry supply chain, influencing everything from manufacturing decisions to retail price points.
Tariffs further amplify these pressures, adding variability and uncertainty to landed costs.
For retailers, the impact is twofold: higher cost of goods, particularly in metal-heavy categories, and increased sensitivity around price adjustments at the showcase.
An Emerging Constraint: Refinery Scrap Intake
Another under-discussed consequence of elevated metal prices is unfolding at the refinery level.
With gold and silver prices high, some refineries reportedly are limiting or delaying acceptance of additional scrap metal due to cash-flow constraints and the capital required to purchase secondary metal at current market values.
For retailers, this introduces new operational considerations. Scrap-buying programs may become less predictable, settlement timelines may lengthen, and margins tied to secondary metal flows may compress.
In periods of high metal prices, scrap activity typically increases, but refinery constraints can blunt that opportunity just as retailers look to offset margin pressure elsewhere.
“Consumers continue to prioritize value and experience, but discretionary spending remains selective.” — Sherry Smith
Selective Engagement, Not a Pullback
Taken together, January’s data does not suggest consumers have exited the jewelry market.
Rather, it reflects a more constrained environment where traffic is lighter, units remain under pressure, and spending is concentrated on fewer, higher-priced transactions.
As Reuters has noted in broader retail coverage, consumers continue to prioritize value and experience, but discretionary spending remains selective.
Jewelry continues to compete for consumer dollars, just not indiscriminately.
Implications for Independent Retailers
In a slow-growth retail environment marked by rising costs and declining units, several priorities rise to the surface; they are as follows.
— Conversion becomes critical. With fewer opportunities entering the store, maximizing each interaction matters more than ever.
— Assortment discipline is essential. Categories that naturally support higher average tickets, particularly colored stones, are helping offset unit pressure.
— Pricing strategy must be intentional and transparent. Metal volatility and tariffs necessitate careful communication of value, not reactive discounting.
— Service models may need re-evaluation. Scrap-based programs should be reviewed in light of refinery behavior and working capital realities.
Reading Data Clearly
January’s performance is neither overly optimistic nor overtly pessimistic. It is precise.
Independent jewelers are operating in an environment where price, cost, and conversion matter more than volume, and where external forces from metal markets to macroeconomic growth play an increasingly visible role in retail outcomes.
Those who align assortment, pricing, and sales strategy to these realities will be best positioned to navigate what remains a selective, cost-pressured retail landscape.
Editors' Picks
Sponsored by
More on Columnists
The Latest
IndependentsAug 14, 2026
Smyth Jewelers to Open Fourth LocationThe family-owned jeweler will open a new showroom in Bel Air, Maryland, this fall.
CrimeAug 14, 2026
Wife of Man Convicted in Jeweler’s Murder Sentenced for Conspiracy Amanda Ileana Hernandez is married to Carlos Hernandez, one of two men in prison for the 2024 murder of Michigan jeweler Hussein Murray.
TrendsAug 14, 2026
Paul Morelli’s Latest ‘Wavey Vine’ Earrings Embrace ColorThe reimagined jewel, our Piece of the Week, trades the diamonds in the original 1998 design for blue, pink, yellow, and green sapphires.
Brought to you by
Why More Jewelry Retailers Are Hosting Turnkey Estate Buying EventsRetailers are seeking new ways to attract customers, increase traffic, and create revenue – Estate buying events are a popular solution.
Supplier BulletinAug 13, 2026
Your Piece Could Be the One Editors Talk AboutSponsored by American Gem Trade Association
Weekly QuizAug 13, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
FinancialsAug 13, 2026
Pandora’s ‘Talisman’ Collection Shines, Lab-Grown Diamond Sales FallIn the United States, second-quarter sales were flat amid soft consumer sentiment and lower in-store traffic.
AuctionsAug 13, 2026
This Gold Cadbury ‘Conundrum’ Egg Set a World Auction RecordThe 22-karat gold egg, sold at Batemans Auctioneers in the U.K., was part of a 1980s treasure hunt ad campaign for Cadbury Creme Eggs.
Brought to you by
Wedding Band Trends 2026: Personalization Takes Center StageColored gemstones, artisan finishes, mixed metals, and meaningful details are shaping demand in bridal jewelry.
SourcingAug 13, 2026
2,488-Carat Diamond, Largest Found in Botswana, Has a New Owner Lucara Diamond Corp., which recovered the “Motswedi” diamond from the Karowe mine, sold the stone for an undisclosed amount.
CollectionsAug 13, 2026
John Hardy Infuses ‘Icon,’ ‘Heishi’ Collections with ColorThe expanded collections now feature hand-cut gemstones like topaz, tanzanite, chrysoprase, chalcedony, smoky quartz, and fire opal.
Lab-GrownAug 13, 2026
Jean Dousset Opens Third StoreThe lab-grown diamond jewelry brand’s newest boutique is in Westfield Valley Fair in Santa Clara, California.
SourcingAug 12, 2026
Eshed-Gemstar on the Painstaking Process of Cutting ‘The Legacy Emerald’The gemstone supplier and manufacturer acquired the remarkable 104-gram Zambian emerald at Gemfields’ auction in May.
CrimeAug 12, 2026
Elderly NYC Woman Targeted in Jewelry Swap SchemeTwo suspects offered to trade the woman a “winning” lottery ticket for her jewelry.
SourcingAug 12, 2026
Another Diamond Mine Poised to CloseFinsch has been in business rescue since May, and owner Petra Diamonds said it sees no viable path forward for the mine.
CrimeAug 12, 2026
Jewelry Store Employee Gets 20 Years to Life in Choking Death of BossMichel Patrick DeSalles was sentenced after pleading guilty to the 2017 murder of Omid Gholian, who owned a jewelry store in Manhattan.
MajorsAug 12, 2026
Frederick Goldman Names New SVP of SalesLongtime industry executive Beth Miller has taken on the role.
AuctionsAug 11, 2026
Verdura Unicorn Brooch With Royal Connection Up for Auction The brooch was owned by Virginia Fortune Ryan Ogilvy, who served as a lady of the bedchamber to Queen Elizabeth II for nearly 50 years.
MajorsAug 11, 2026
Signet Jewelers Selects Mattel Exec to Lead Zales, BanterJamie Cygielman will take on the role on Aug. 24.
IndependentsAug 11, 2026
Polly’s Fine Jewelry Co-Owner Richard Moore Dies at 69Moore, Polly’s husband, is remembered as a family man with an easygoing spirit and a love for sports and the outdoors.
Events & AwardsAug 11, 2026
NAJA Announces Lineup For 2026 Fall Virtual ConferenceThe mid-year conference for jewelry and watch appraisers will take place Sept. 5-6 on Zoom.
TechnologyAug 10, 2026
Colorado Jeweler Launches Customization Tool He Built HimselfHonest Hands Ring Co. Founder Benjamin Bosworth shared his thoughts on jewelry technology and why AI can never replace the human element.
MajorsAug 10, 2026
QVC Exits Chapter 11 Bankruptcy, Names New Interim CEOQVC Group President and CEO David Rawlinson is temporarily being replaced by a familiar face, former QVC CEO Mike George.
CollectionsAug 10, 2026
State Property Puts a Ripple in the ‘The Voyager’ CollectionThe brand also added two one-of-a-kind brown diamond pieces to the “Sanssouci” series of its “Gardens” collection.
MajorsAug 10, 2026
And IJO’s 2026 Vendor of the Year Is … Ostbye took home top vendor honors at the Independent Jewelers Organization’s show, held last month in Kentucky.
Supplier BulletinAug 07, 2026
Why More Jewelry Retailers Are Hosting Turnkey Estate Buying EventsSponsored by Stratus Estate Buyers
MajorsAug 07, 2026
Retail Veteran Pam Cloud Appointed President of Blue NileCloud, who will officially join Blue Nile on Monday, spent 26 years at Tiffany & Co. and founded jewelry brand Roseate.
MajorsAug 07, 2026
Pandora Appoints Paulo Garcia as New CFO Garcia will take over from the company’s current CFO, Anders Boyer, who is retiring at the end of November.
