The surge in gold prices by 67% in 2025 has put immense pressure on the global jewellery industry, reshaping margins and pricing strategies. While the total demand from the jewellery and watch industry decreased to 1,542 tonnes from 1,887 tonnes the previous year, the value rose to $172 billion from $145 billion. This indicates that consumers are purchasing fewer pieces but are willing to spend more, particularly on luxury items. High-end brands like Cartier and Van Cleef & Arpels have managed to grow their sales, with the Richemont conglomerate's jewellery brands reporting a 14% increase in sales from April to December 2025. In contrast, mass-market jewellers, whose production costs are highly sensitive to gold prices, are facing significant challenges. The UK’s National Association of Jewellers has recommended various strategies for retailers, including repricing and adjusting inventory practices. Furthermore, the rise of platinum as a viable alternative to gold is gaining traction, especially in markets like India where platinum offers higher profit margins. As the jewellery industry navigates these challenges, the importance of design and brand equity remains crucial for sustaining sales.