Resilience is the backbone of the gem and jewellery industry. Amid challenging times, the trade has always found a way through. Often, industry players would cite the cyclical nature of business as par for the course. 

The past three years have arguably been the toughest yet for the trade. After a global pandemic that fundamentally reshaped the business landscape, revenge spending led many consumers to indulge in luxuries other than jewellery. Experiences and technology lured away discretionary spending, while the perfect storm of high gold prices, evolving consumer preferences and trade tensions threatened to keep growth opportunities hostage. 

The jewellery trade though is nothing if not resilient, with business diversification and strategic shifts always on the ready to sustain momentum.

Diamond trade

The diamond industry is banding together to rekindle market interest in natural diamond jewellery. 

Trade associations and key players now collaborate on new-age marketing campaigns, focusing on social channels and influencers to engage with younger consumers and build tomorrow’s customer base. Many diamond consumer marketing efforts now eschew brands and feature more natural scenarios to emphasise authenticity and connection. 

In strong social-media markets such as China, De Beers Group and Chow Tai Fook run social campaigns where influencers incorporate keywords in the conversations or spiels of their short-form videos. 

The Natural Diamond Council, for its part, zooms in on the innate charms of diamond-producing countries, highlighting the good diamonds do for local communities. 

Gem ideals

The coloured gemstone sector, for its part, is benefiting from growing market interest in colour. Steady demand amid tight supply of suitable goods keeps prices on an upward trajectory, leading several diamond dealers to also include coloured gemstones in their inventory.

As the gemstone trade is largely dependent on overall jewellery demand, which goes through its own set of peaks and troughs, as well as supply of suitable rough, many gemstone dealers are revisiting old stock and refreshing cuts.

Paul-Otto Caesar, CEO of Gustav Caesar GmbH, came across old stock of morganite in his inventory, which he turned into a layout of fluted stones. The German lapidarist, known for its vintage cuts, also adapts its stones to current market needs. “Given the high gold prices today, we keep our cuts shallow so our clients can create a bigger look while using less gold,” said Paul-Otto.

Jewellery designer Alexander Laut, who specialises in big cocktail rings featuring fine gemstones, expanded his services last year to offer loose coloured gemstones that clients can transform into bespoke jewellery. Laut explained, “People enjoy being part of the creative process. We let the client choose the gemstone and work with them to design the piece. The finished jewellery piece is thus very meaningful to them.”

Thailand-based corundum specialist Chaiwat Gems is using the downtime stemming from tariff-related uncertainties to refresh its inventory. According to Chaiwat’s Natcha Tungsawatdamrong, the company is expanding its calibrated and fine offerings by recutting stock. This would allow it to command slightly higher prices for an enhanced selection of goods when the market rebounds, she disclosed.

Fresh jewels

On the finished jewellery front, manufacturers and designers are exploring themed designs, innovative materials and new technologies to maintain an edge in the market despite skyrocketing gold prices.

Several Hong Kong companies have latched onto the city’s panda craze with collections inspired by the adorable cubs. Designer Tania Chan paired slices of rare precious metal, osmium, with top-quality diamonds and fancy sapphires in her fine jewellery line, while Maeve Gillies resorted to 3D printing for her latest platinum jewellery collection Tusaire.

At the same time, the jewellery industry is adapting to societal shifts in the form of conscious consumerism, younger generations and ESG (environmental, social and governance) legislation but that is yet another story. (Stay tuned!)

Looking ahead
At press time, we are midway into the 90-day pause of US reciprocal tariffs, which came with its own share of uncertainties. Additional US tariffs on Chinese goods have likewise been trimmed to 30 per cent. 

After initial shockwaves froze deliveries to the US, the industry then started examining its options, which range from geographic relocation to market diversification and supply chain changes. Once again, the diamond trade is uniting to seek an exemption on tariffs for natural diamonds. 

While US tariffs remain an unknown variable (at least for the next 45 days), the industry is bound to once again dig deep into its reserves of fortitude and resiliency to emerge on the other end – perhaps not totally unscathed but definitely undeterred. 
 

JGW & JNA: 42 Years, 42 Stories is an online series running throughout 2025 to celebrate the 42nd anniversary of Jewellery & Gem WORLD Hong Kong and JNA. A new story of creativity, craftsmanship and innovation will be released every week. Subscribe to free JNA News Alerts to be notified when the next story is out.