Citi Report: Jewelry Shines as US Luxury Shoppers Shift Spending Priorities

Amid a broader slowdown in US luxury spending, fine jewelry has emerged as a glimmering standout, according to a new report from Citigroup. Based on credit card transaction data from more than 10 million US cardholders, Citi found that while spending on luxury goods overall fell in the first five months of 2025 compared to the same period in 2024, luxury jewelry sales have continued to rise.

In May alone, luxury jewelry spending surged 10.1% year over year, continuing a monthly growth trend that began in September 2024. In contrast, categories such as handbags and apparel saw declines, weighed down by rising prices and waning consumer enthusiasm.

Citi analyst Thomas Chauvet told CNBC that the durability of jewelry sales likely reflects a shift in consumer values.

“When you have $3,000 to spend on luxury, are you going to buy a piece of jewelry or a handbag for the same price?” he asked. “Perhaps the piece of jewelry gives you superior intrinsic value given the precious metals content and superior emotional value and meaning.”

While luxury handbag brands have raised prices by as much as 30% to 40% since the pandemic — often without delivering clear improvements — jewelry appears to offer both financial and sentimental rewards. Chauvet noted that gold prices have risen more than 25% in 2025, yet many jewelers have kept price increases modest. That combination is making jewelry look like a smarter investment.

Jewelry was also the only luxury category in May to see an increase not just in average spend per customer but also in the number of customers overall. Even within the high-end segment — where a 2.7% drop in customer count was recorded — those who remained spent 11.7% more on average.

Looking ahead, Chauvet cautioned that economic uncertainties remain—from a weakening US dollar to geopolitical tensions and the possible expiration of a 90-day pause on new tariffs.

Still, the data suggests that in uncertain times, consumers are gravitating toward purchases with lasting value — both emotional and financial. And jewelry fits the bill.

Credit: Photo by BigStockPhoto.com.