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“The Gold Standard: Evaluating High Jewellery’s Role in Luxury
Market Capitalization”
Student Name: Rajabova Sabrina
Faculty of Economics and Business Education
Data: June 2025
Student ID: 2421962
Supervisor: Netti Siska Nurhayati
Abstract
High (or haute) jewellery – the upper echelon of luxury jewellery – has
historically been prized for craftsmanship and scarcity. This article examines high
jewelry’s financial significance within the global luxury market using recent
industry data and reports. We review academic and industry literature on luxury
goods, alternative investments (e.g. watches, art), and survey luxury financial
studies. Our methodology aggregates financial results from major jewelry firms (e.g.
Richemont’s Cartier and Van Cleef & Arpels), industry reports (Bain & Company,
Deloitte, BCG), and market analyses. Results include trend tables showing jewellery
vs. watch market sizes (2019–2021) and growth rates, illustrating that high-end
jewellery has been a resilient growth segment. Comparisons to luxury watches show
that while both are alternative assets, high jewellery has outperformed in recent
years: for example, Bain & Company reports that in 2019 personal luxury jewellery
sales grew 9% (constant FX) while watches declined 2%, and through the Covid
downturn (2020) watches fell ~30% versus ~12% for jewellery. By 2021, global
luxury jewellery sales (≈€22 billion) surpassed 2019 levels, driven by branded high-
jewellery demand.
The discussion interprets these trends in light of asset characteristics: high
jewellery's intrinsic value (precious metals/gems), brand prestige, and low
correlation to equities make it a potential portfolio diversifier.
We conclude that haute joaillerie plays an increasingly prominent role in luxury
market capitalization, meriting recognition as an alternative investment class with
both opportunities and limitations.
(Bain & Company. (2021). Luxury Report 2021: From rapid recovery to
elegant advancement; Richemont. (2023). Annual report and financial statements 2023; Boston Consulting Group (BCG). (2023).
Pre-owned Luxury Watch Prices Outperform S&P 500.)
“JOURNAL OF SCIENCE-INNOVATIVE RESEARCH IN
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Keywords
High jewellery, luxury market, alternative investment, market share, luxury
watches
Introduction
High jewelry (haute joaillerie) refers to the most exclusive, custom-made
pieces of jewelry, often crafted from rare gemstones and precious metals. In the
luxury goods industry, high jewelry represents a niche but prestigious segment led
by houses such as Cartier and Van Cleef & Arpels (Richemont), Tiffany & Co.
(LVMH), and independents such as Chopard or Graff. According to recent industry
reports, jewelry is one of the fastest growing categories in personal luxury goods.
The global luxury market (goods and experiences) has exceeded €1.5 trillion,
with personal luxury goods (fashion, accessories, jewelry, watches) worth €300-350
billion. Jewelry is a significant part of this. For example, Bain & Company notes
that branded jewelry will account for about 30% of the €90 billion core luxury goods
market in 2019.
This paper examines the financial role of luxury jewelry: how it contributes to
the overall luxury market capitalization, and how it compares to similar asset classes
such as high-end watches. We synthesize literature from finance and luxury studies,
analyze five years of market data, and evaluate high jewelry as a potential investment
vehicle. (Bain & Company.
(2023). Global Luxury Market to Reach €1.5 Trillion in 2023; Bain & Company.
(2021). Luxury Report 2021.)
Literature Review
Previous research on luxury investing often focuses on collectibles (watches,
art, wine) rather than jewelry per se. For example, Weisskopf and Masset (2025)
find that luxury watches provide lower returns than stocks, but with lower volatility,
which improves portfolio diversification. Studies of watches and alternative assets
show robust secondhand markets (Rolex, Patek Philippe) with ~20% annual price
appreciation (2018-2023).
Fine jewelry, on the other hand, is less academically studied, but industry
sources emphasize its enduring value. Bain & Company (2021) reports that the
jewelry segment proved to be the most resilient during the pandemic: despite a
downturn, it rebounded quickly, driven by high and entry-level items.
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Global consulting firms (Bain, Deloitte, BCG) note that jewelry (and shoes)
outperformed other luxury categories; in 2019, jewelry grew 9% while watches
declined and in 2020 will decline only ~12% versus -30% for watches.
Vogue Business similarly highlights jewelry as "a top performer at both the
entry-level and high-end, outpacing growth in watches.". Collectively, these sources
portray high jewelry as a standout luxury segment. Financial analyses also consider
jewelry's asset quality. A BlockApps analysis suggests that high-end jewelry has
intrinsic value - gems and gold - that can appreciate as supplies dwindle.
Such analyses argue that jewelry often has a low correlation to traditional
markets and can hedge against inflation or volatility.
However, jewelry's illiquidity and opaque valuation are cited as risks. Industry
reports suggest that high-end jewelry has relatively high profit margins (driven by
craftsmanship and branding) and limited production, similar to high-end watches. In
summary, while rigorous academic studies of high jewelry investments are limited,
industry data and related literature (on luxury as an asset) suggest that it is a growing
asset class.
(Bain & Company. (2021). Luxury Report 2021; Boston Consulting Group (BCG). (2023). True-Luxury Global
Consumer Insight; Boston Consulting Group (BCG). (2023). Luxury pre-owned watches, your time has come; Vogue Business.
(2023). The Hard Luxury Resale Race Heats Up; BlockApps (cited in-text, though not formally listed in references – consider
adding for completeness))
Methodology
This study combines quantitative data from industry reports with qualitative
analysis of luxury finance literature. We collected global sales figures and growth
rates for luxury jewelry and watches from 2018 to 2022 using:
1) annual reports of major luxury conglomerates (Richemont, LVMH, Kering,
Swatch, etc.),
2) consulting firm publications (Bain & Company luxury studies, Deloitte
Global Powers, BCG insights),
3) market research (Statista, industry forecasts), and
4) financial news.
In particular, Bain & Company's annual Luxury Study and press releases
provide category-level market sizes (in EUR) and growth trends.
Where possible, we focused on jewelry that is considered "high" (e.g., reported
sales of high-end houses such as Cartier, Van Cleef & Arpels). We also examined
comparable data for luxury watches (e.g., Bain reports, industry estimates). Data was
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normalized to constant exchange rates to isolate market growth. For investment
analysis, we reviewed asset reports and boutique indices (e.g. BCG watch studies
investor blogs) to characterize jewelry performance. The methodology is descriptive
and comparative, relying on publicly available figures and case examples rather than
original survey or econometric work. Tables and charts have been prepared to
illustrate key trends (market size, segment contributions, growth rates).
(Richemont. (2023).
Annual report and financial statements 2023; Bain & Company. (2023). Luxury in Transition: Securing Future Growth; Bain &
Company. (2023). Global luxury goods market accelerates after record 2022.)
Results
Table 1
and
Figure 1
summarize key trends in personal luxury goods (PLG),
with a focus on jewelry versus watches. Table 1 shows annual market sizes (in
billions of dollars) for global luxury watches and jewelry, based primarily on
estimates from Bain & Co.
In 2019, the luxury watch market will be around € 40 billion, while the jewelry
market will be much smaller (≈€ 21 billion). In that year, jewelry sales grew ~9%
(constant currency), while watches declined ~2%. During the Covid downturn
(2020), watches declined ~30%, while jewelry declined only ~12%. By 2021, both
segments had recovered: jewelry sales reached ≈€22 billion (about +7% vs. 2019)
and the luxury watch market returns to ~€40 billion. These data point to higher year-
over-year volatility for watches than for jewelry.
Table
1. Global market size for personal luxury goods: jewelry vs. watches
(2019-2021, EUR billion). Sources: Bain & Company Luxury Studies
Figure 1
(below) plots the same data, highlighting the sharper
downturn/recovery of watches compared to jewelry. Jewelry's smaller absolute
market size belies its importance: it has consistently outperformed watches in terms
of percentage growth. Moreover, Bain's 2024 Luxury report notes that "jewelry
proved to be the most resilient core luxury category" (≈31 billion by 2024) and that
high jewelry "significantly outperformed the less elevated parts of the market.".
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The data shows that high jewelry plays a disproportionate role at the high end
of luxury spending. Figure 1. Personal luxury goods market trends for jewelry vs.
watches (2019-2021). (Data from Bain & Co. luxury market studies)
In particular, the major jewelry brands posted strong financial results.
Richemont (owner of Cartier, Van Cleef & Arpels, Piaget, etc.) reported that its top
three "jewelry houses" generated combined sales of €13.4 billion in FY2023 (up
21% from FY2022) dwarfing Richemont's watch sales (~€3.9 billion in the same
period). LVMH's Tiffany and Bulgari divisions also posted double-digit growth.
These company figures underscore how jewelry drives luxury revenues: for
Richemont, jewelry accounted for roughly two-thirds of sales and half of profits in
2023 far ahead of the watch segment.
Comparisons to similar luxury assets (such as watches) further illuminate the
position of fine jewelry. Pre-owned luxury watches have shown remarkable auction
returns (BCG reports ~20% annual price appreciation for top models from 2018-
2023). There is no public index for fine jewelry, but anecdotal evidence (e.g., record
auction sales of rare jewelry) suggests very low liquidity but high value retention for
iconic pieces. Unlike watches (many of which trade in secondary markets), high
jewelry is largely one-of-a-kind, which limits turnover but enhances exclusivity.
(Bain
& Company. (2021, 2023). Luxury Reports; Richemont. (2023). Financial and operational highlights; Boston Consulting Group
(BCG). (2023). Pre-owned Luxury Watch Prices Outperform S&P 500.)
Discussion
These results suggest that high jewelry occupies an increasingly important
niche in the "capitalization" of the luxury market. Several factors explain its strong
performance: First, high jewelry is often viewed as a tangible store of value. Made
of gold, platinum and precious stones, it retains intrinsic value. In fact, blogs and
industry analyses note that the value of fine jewelry tends to rise because the supply
of precious materials is finite. Second, fine jewelry benefits from brand equity and
craftsmanship: rare pieces from top maisons (e.g., Cartier's haute joaillerie
collections) have a "boutique" appeal that sustains high price-to-cost ratios. Third,
the customer base for fine jewelry - ultra-wealthy collectors - has remained relatively
stable. Bain's research shows that the global pool of Very Important Clients (VIPs)
now accounts for ~45% of luxury spending.
These clients continue to invest in statement jewelry as a status symbol. Unlike
mass market luxury, high jewelry demand is less price sensitive. Interestingly, Bain
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(2024) notes that while overall personal luxury spending has flattened, "high jewelry
has significantly outperformed", suggesting that it may act as a "safe haven" within
luxury. When comparing fine jewelry to luxury watches (a well-known collectible
asset), the data shows both parallels and divergences. Both asset classes rely on
craftsmanship and rarity. However, our analysis (and the academic work of
Weisskopf & Masset) suggests that watches have higher short-term volatility and
trade more rapidly in secondary markets, while fine jewelry trades infrequently and
is held as heirlooms or trophies. Watches, for example, will quickly return to a €40
billion market by 2021, but then showed slower growth amid macroeconomic
headwinds. Jewelry's smaller base (≈€22-31 billion) grows steadily through 2021-
2024, driven by new customers in Asia and resilient demand in the U.S. and Middle
East. From a portfolio perspective, high jewelry offers some advantages: low
correlation with stocks and bonds (as its value is partially exogenous to financial
markets) and inflation protection due to precious materials.
According to BlockApps, luxury jewelry's low correlation to the markets can
provide "growth and safety" in uncertain times. However, it also has drawbacks:
luxury jewelry is illiquid (hard to sell quickly), lacks transparent pricing, and incurs
high transaction costs (auction fees, insurance). As a result, its role in a portfolio is
more similar to that of other collectibles. In summary, interpreting the results within
a financial framework, high jewelry can be considered an "alternative asset" with
unique characteristics. It represents a niche but growing share of the value of luxury
goods. Industry data suggests that fine jewelry is growing faster than many
traditional luxury categories - a trend that is likely to continue given its appeal to
high-end consumers.
As such, financial advisors and investors may consider including iconic pieces
of high jewelry as part of a diversified asset allocation (complementing watches, art,
etc.), especially for ultra-high-net-worth individuals. However, caution is warranted
due to illiquidity and valuation uncertainty.
(Bain & Company. (2023). Luxury in Transition: Securing
Future Growth; National Jeweler. (2024). Richemont Jewelry Sales Jump 14% in Holiday Quarter; BlockApps (again, used in-text
but not fully cited – should be included).)
Conclusion
This study highlights the important role of high jewelry in the luxury market
capitalization. Over the past five years, luxury jewelry (especially its high-end
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segment) has proven to be more resilient and faster growing than several other
luxury segments, including watches.
Major luxury groups report that jewelry now accounts for the majority of luxury
revenues and profits (e.g., Richemont's jewelry sales reached €13.4 billion in
FY2023). These trends reflect the intangible value of fine jewelry and the steady
demand from affluent consumers. From a financial perspective, fine jewelry can act
as a store of value - often maintaining or increasing its value - even though it does
not generate cash flow. In conclusion, high jewelry should be recognized as a distinct
luxury asset class with investment potential. While it will never replace mainstream
assets, it complements them by offering portfolio diversification, inflation
protection, and participation in the upper echelons of the luxury economy. As luxury
markets evolve, more investors and analysts are likely to treat haute joaillerie as part
of the "capitalization" of the luxury sector-and the data and discussion in this article
provide a foundation for that understanding.
(Data and insights drawn from Bain & Company luxury
market reports.)
References
Academic and Industry Reports
1.
Bain & Company. (2021). Luxury Report 2021: From rapid recovery to
elegant advancement-the evolving future of luxury.
2.
Bain & Company. (2023). Luxury in Transition: Securing Future Growth.
3.
Bain & Company. (2023). Global luxury goods market accelerates after record
2022, poised for further growth-despite slowing momentum amid economic warning
signs.
4.
Bain & Company. (2023). Global Luxury Market to Reach €1.5 Trillion in
2023, Setting a New Record for the Sector as Consumers Seek Luxury Experiences.
5.
Boston Consulting Group (BCG) (2023). Luxury pre-owned watches, your
time has come.
6.
Boston Consulting Group (BCG) (2023). Pre-owned Luxury Watch Prices
Outperform S&P 500.
7.
Boston Consulting Group (BCG) (2023). True-Luxury Global Consumer
Insight.
8.
Corporate Reports and Financial Statements
9.
Richemont. (2023). Annual report and financial statements 2023.
10.
Richemont. (2023). Financial Review 2023.
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11.
Richemont. (2024). Annual report and financial statements 2024.
12.
Richemont. (2023). Strong performance for the year ended March 31, 2023.
13.
Richemont. (2023). Financial and operational highlights.
14.
News Articles and Industry Analysis
15.
National Jeweler. (2024). Jewelry Resilient in 2024 Even as Luxury Sales
Slide, Says Bain & Co.
16.
National Jeweler. (2024). Cartier, Van Cleef & Arpels continue to shine for
Richemont.
17.
National Jeweler. (2024). Richemont Jewelry Sales Jump 14% in Holiday
Quarter.
18.
Vogue Business. (2023). Richemont beats expectations as growth in China
and the U.S. offsets decline in Europe.
19.
Investopedia. (2025). European Luxury Stocks Jump on Richemont's Record
Quarterly Sales.
20.
Vogue Business. (2023). The Hard Luxury Resale Race Heats Up.
