Wealthy consumers are continuing to invest in jewelry, though their spending is focused on select premium brands.

The world's wealthiest individuals are continuing to invest in highend jewelry, with many opting for premium brands over more affordable options. According to a report by Richemont, a Swiss luxury group that owns several luxury jewelry brands including Van Cleef & Arpels, Buccellati, and Cartier, the demand for luxury jewelry is stronger than ever. Richemont's Jewellery Maisons division reported an 11% growth in sales during the fourth quarter, making it the company's strongest segment.The growth of the high-end jewelry market is attributed to the increasing selectivity of wealthy consumers, who are willing to pay top dollar for exclusive and high-quality pieces. "Richemont's jewelry brands are really at the top of consumer desirability," said Luca Solca, sector head for global luxury goods at Bernstein. "There's no debate. Despite the efforts by LVMH to challenge this leadership, I think that other brands are clearly behind."Richemont's chairman, Johann Rupert, attributed the company's success to its ability to gain market share in the jewelry segment, even as other luxury brands struggle. "We are gaining market share in jewelry, from branded and non-branded companies," he said.However, not all luxury categories are performing equally well. Richemont's watch sales fell 13% in 2024, largely due to weakness in China. The global watch market is expected to take some time to recover, with many premium Swiss watchmakers experiencing a slowdown in demand.According to Solca, the fundamental nature of the luxury watch market makes it slow to rebound. "Everybody and their dog has bought a watch out of Covid-19 and that will take a while to digest. So I expect watches to be on the backfoot for a while longer," he said.In contrast, the growth of the high-end jewelry market could be a positive sign for Richemont, especially as resurging global trade headwinds may impact other luxury categories such as fashion and leather goods. Richemont has stated that it will not take price increases that it cannot sustain, which could help the company maintain its market share in the face of potential headwinds.