July saw an increase in U.S. jewelry sales, with a 6.5% rise compared to the same time last year, according to a new piece by diamond analyst Edahn Golan. The standout trend was the continued interest in natural diamonds, both loose and in finished jewelry. Overall, revenue from natural diamond sales increased by 8.5%, with a 5% rise in the average spending per item.
Moderate Growth in Finished Jewelry Revenue
The fine jewelry market experienced steady growth in July, with revenues increasing by 6.4% year over year, despite unit sales remaining flat. This revenue growth was driven entirely by a 6.4% hike in the average retail price. Year-to-date, unit sales have fallen by 1.4%, but the overall retail value has risen by 1.9%. The shift toward higher price points contributed to a 7.5% increase in gross profit for retailers from finished jewelry sales in July, according to Golan’s analysis.
Total US Jewelry YoY Sales Trend
Solid Performance in Natural Diamond Jewelry Sales
Natural diamond jewelry performed well in July, with a 3.2% increase in unit sales and a 7.6% rise in sales value. U.S. consumers purchased more jewelry across almost all categories. Bracelet sales jumped by 15.5%, necklaces grew by 8.8%, and pendants saw a 3.8% improvement. Ring sales experienced modest growth of nearly 1%, driven by a 6.9% increase in fashion units and a 21.4% rise in revenue. Earrings were the only category to see a slight decline, down by just 0.1%, according to Golan.
Positive Shift in Loose Diamond Sales
In contrast to the cautious outlook in the diamond industry, sales of loose diamonds—both natural and lab-grown—increased in July. This rise was noticeable when compared to both June and July 2023, partly due to the particularly low sales in July 2023. Traditionally, July sales are lower than those in June, but this year, July exceeded expectations.
US Loose Natural Diamonds Sales Trend
Natural Diamond Sales: Signs of Recovery?
Year over year, loose natural diamond sales grew by 4.2% in volume and 10% in value, providing some relief to an industry facing significant challenges, particularly from decreased demand in China. The average spend on a natural diamond increased by nearly 1% month over month and by 5.7% year over year, reflecting a shift toward larger diamonds. The increase in both value and units sold indicates that U.S. consumers are not only spending more on natural diamonds but are also purchasing more diamonds overall. Although typically linked to engagement rings, July saw a decline in engagement ring purchases, yet the average diamond size increased to 1.38 carats.
According to Golan’s analysis, these trends hint at a potential recovery in natural diamond sales, though it remains to be seen whether this momentum will continue.
