The global jewellery industry is undergoing a significant structural change. Independent jewellers, manufacturers, wholesalers and traditional retailers are facing mounting financial pressure, fewer new businesses are entering the market, and established operators are increasingly being forced to close, consolidate or rethink their business models.
For an industry built on generations of craftsmanship, family ownership, personal relationships and the enduring appeal of precious metals and gemstones, the warning signs are becoming difficult to ignore.
While the United States is reporting a continuing decline in the number of jewellery businesses, Australia faces its own challenges. High operating costs, elevated interest rates, pressure on household disposable incomes, rising wages, commercial rents and changing consumer behaviour are creating an increasingly difficult environment for Australian jewellery businesses.
There is also a bigger question: is the traditional jewellery retail model becoming unsustainable?
The answer may have significant implications for consumers, jewellers, manufacturers and anyone looking to buy, sell or inherit valuable jewellery.
The American jewellery industry: A warning sign for the rest of the world
The latest figures from the Jewelers Board of Trade (JBT), released in October 2026, provide a useful snapshot of the pressures facing the American jewellery trade.
At 30 September 2026, the United States had 21,831 listed jewellery retailers, wholesalers and manufacturers, representing a 1.4% decline compared with the previous year.
US jewellery industry – third quarter 2026
21,831
Active listed businesses
-1.4%
Annual decline
67
New businesses in Q3
15
Bankruptcies in first nine months
Source: Jewelers Board of Trade, September 2026 reporting.
The breakdown is particularly revealing:
| Business category | Businesses remaining | Annual change |
|---|---|---|
| Retailers | 16,564 | -1.5% |
| Wholesalers | 3,206 | -0.9% |
| Manufacturers | 2,061 | -1.7% |
The number of new businesses being established is equally concerning. Only 67 jewellery companies opened during the third quarter, compared with 89 during the same period last year.
For the first nine months of 2026, just 236 new businesses were established, a reduction of 14.8% from the previous year’s 277.
Meanwhile, 116 businesses exited the industry during the third quarter. Although this was an improvement on the 126 exits recorded a year earlier, bankruptcies over the first nine months more than doubled, increasing from seven to 15.
The message is clear: even in one of the world’s largest and most established jewellery markets, the traditional trade is under pressure.
And importantly, the problem is not confined to shopfronts. Retailers, wholesalers and manufacturers are all experiencing contraction.
This is a global structural change, not simply a difficult trading year
The challenges facing the jewellery industry are being driven by several forces occurring simultaneously.
1. The rising cost of doing business
Jewellery retailers traditionally operate with substantial overheads. Commercial rents, wages, insurance, security, electricity, inventory financing and compliance costs all contribute to the cost of maintaining a physical retail operation.
For independent jewellers, these expenses can become increasingly difficult to absorb when customer numbers and sales volumes weaken.
Unlike many other retail categories, jewellery businesses must also maintain significant amounts of valuable stock, often tying up substantial working capital in products that may take months or even years to sell.
2. The changing economics of gold and diamonds
The dramatic increase in precious metal prices has created another challenge.
When gold prices rise, the replacement cost of jewellery inventory rises with them. Retailers must either commit more capital to maintaining their stock levels or operate with smaller inventories.
Consumers, meanwhile, are confronted with higher prices for traditional gold jewellery.
This creates a difficult situation: the value of the underlying metal may increase, but the number of customers able or willing to purchase finished jewellery can decline.
3. Online competition and changing consumer behaviour
The traditional jewellery store is no longer the only place consumers can research, compare and purchase jewellery.
Online retailers, international marketplaces and direct-to-consumer brands have changed the competitive landscape.
Customers can compare prices internationally, investigate diamonds independently and purchase products without necessarily visiting a physical showroom.
This has put additional pressure on businesses that rely on high retail margins and expensive shopfronts.
4. Lab-grown diamonds have disrupted traditional diamond retailing
The rapid growth of laboratory-grown diamonds has fundamentally changed the diamond market.
Consumers can now purchase visually comparable laboratory-grown diamonds at a fraction of the price of natural diamonds.
While this has opened the market to a different category of customer, it has also created significant pricing pressure for retailers holding natural diamond inventory.
Natural diamonds and laboratory-grown diamonds are not the same product economically. Their supply characteristics, rarity, resale markets and long-term value propositions are different.
Retailers that fail to explain these differences risk competing purely on price.
5. Family businesses are struggling with succession
Another important factor is generational change.
Many jewellery businesses were established by families who built their reputations over decades. Their owners often possess exceptional technical knowledge, manufacturing experience and relationships that cannot easily be replaced.
However, the next generation does not always want to inherit the responsibility, financial commitment and operating demands of a traditional jewellery business.
As a result, some established businesses are being sold, consolidated or closed rather than passed on.
This is particularly significant because the disappearance of an experienced jeweller represents more than the loss of another retail outlet. It can mean the loss of valuable industry knowledge, craftsmanship and expertise.
Australia: An especially challenging environment for jewellery businesses
Australia deserves particular attention.
It is tempting to describe Australia as the worst-performing developed economy in the world for jewellery businesses. However, there is currently insufficient comparable international jewellery-industry data to establish that definitive ranking.
What can be established is that Australia is experiencing substantial pressure across its retail sector, with smaller discretionary retailers particularly exposed.
The economic environment is making it increasingly difficult for businesses to operate profitably.
According to KPMG’s September 2026 Retail Health Index, Australia’s retail sector deteriorated further during the June quarter, with its index falling to -1.07 from -0.39 in the previous quarter.
KPMG identified higher business costs, fragile consumer confidence, weaker profitability and elevated insolvencies as important factors. Its outlook suggests that challenging retail conditions could persist through to the end of 2027. KPMG Australia
Deloitte Access Economics has also warned that Australian retail spending is likely to weaken.
Its September 2026 forecasts anticipate real retail turnover growth slowing from 2.8% in 2025–26 to just 1.5% in 2026–27, as higher interest rates, weaker real wages and pressure on household finances affect discretionary purchases. Deloitte Australia+1
For jewellery businesses, this is particularly problematic.
Jewellery is generally a discretionary purchase. Engagement rings, anniversary gifts, luxury watches, diamond earrings and substantial gold jewellery purchases can be postponed when households are worried about mortgages, living expenses and financial security.
The Australian business environment also has some significant structural disadvantages:
- High labour costs: Australian wage and employment expenses place considerable pressure on smaller retailers.
- Commercial property costs: Maintaining a premium retail location can consume a substantial proportion of revenue.
- Compliance and operating expenses: Insurance, security, administration and regulatory obligations add to the cost of doing business.
- Household financial pressure: Mortgage commitments and the cost of living compete directly with discretionary spending.
- International competition: Australian businesses must compete with global online retailers that may have different cost structures and access to larger markets.
The broader business figures reinforce the concern.
Australian industry data published in August 2026 showed 14,500 business insolvencies over the financial year to June, approximately 70% above pre-pandemic levels. Retail and accommodation businesses were among those affected by weaker consumer spending. August 2026
Furthermore, Australian small retail businesses declined by more than 10,000, or 9%, between 2020–21 and 2024–25. New business entries also fell during that period. Service and Creative Skills Australia (SaCSA)
These are not jewellery-specific figures, but they demonstrate the difficult environment in which Australian jewellers are operating.
Why traditional jewellery retailers are particularly vulnerable
One of the biggest problems facing traditional jewellery retailers is the way their businesses are structured.
A conventional jewellery store may have:
- A substantial investment in finished jewellery inventory.
- Expensive premises in shopping centres or premium retail locations.
- Several employees, including salespeople and specialist staff.
- Security systems, insurance and other fixed operating costs.
- A reliance on customers purchasing new jewellery at retail prices.
When sales slow, most of these expenses remain unchanged.
A business can therefore experience a significant decline in profitability even when the value of its stock is increasing.
There is also a fundamental difference between selling jewellery and buying precious metals or second-hand jewellery.
A traditional retailer needs to sell new products, often with significant manufacturing, distribution and retail costs built into the final price.
A specialist precious metals and jewellery buyer, on the other hand, operates in a different part of the market. It can provide services to people who are looking to sell, liquidate, value or redistribute existing assets.
This distinction is becoming increasingly important.
The Australian jewellery industry needs to adapt
The future of the jewellery industry will not necessarily belong to the businesses with the biggest shopfronts or the most expensive advertising campaigns.
It is likely to favour businesses with genuine expertise, lower operating overheads, established reputations and the ability to provide services beyond simply selling new jewellery.
Consumers are becoming more informed. They want to understand what their jewellery is worth, how diamonds are graded, what their gold contains and what they can realistically expect to receive when selling.
They also want confidence that the person assessing their valuables has the technical knowledge and experience to provide an honest opinion.
This is where specialist knowledge becomes a competitive advantage.
GoldCompany and DCLA: A different approach to the jewellery industry
While much of the traditional jewellery trade remains focused on selling new products, the GoldCompany Group has developed a broader business model built around buying, selling, assessing and understanding precious metals, diamonds and jewellery.
Established in Australia in 2008, the GoldCompany Group brings together specialist expertise across gold, diamonds, jewellery and precious metals.
Its businesses include GoldCompany and the Diamond Certification Laboratory of Australia (DCLA).
This combination provides an important advantage in an industry where independent technical knowledge is becoming increasingly valuable.
GoldCompany – expertise in buying and valuing precious metals and jewellery
GoldCompany specialises in purchasing gold, silver, platinum, coins, diamonds, watches and estate jewellery.
For customers looking to sell inherited jewellery, divide an estate or understand the value of their possessions, the ability to deal with experienced specialists is particularly important.
Rather than relying on a simple weight-based assessment, customers can benefit from an understanding of the individual components of their jewellery, including precious metals, gemstones, diamonds and potentially valuable individual pieces.
DCLA – independent diamond expertise
The Diamond Certification Laboratory of Australia provides specialist diamond identification, grading and certification services.
Its technical capabilities include assessing natural and laboratory-grown diamonds, identifying treatments and examining diamond characteristics.
The laboratory provides an additional level of expertise when customers need to understand what they own, particularly when dealing with valuable estate jewellery, inherited diamonds or significant individual gemstones.
Three generations of knowledge and experience
The GoldCompany Group’s foundations are built on generations of experience in diamonds, gold, manufacturing and precious metals.
That background matters.
Understanding a diamond requires more than looking at its size. Understanding gold jewellery requires more than weighing it. And understanding the potential value of an estate requires knowledge of the different markets in which its individual items can be sold.
This is the type of expertise that becomes increasingly important as consumers become more cautious and demand greater transparency.
The opportunity: The industry may be shrinking, but the need for expertise is growing
There is an important distinction between the number of jewellery businesses operating and the underlying demand for jewellery expertise.
People will continue to inherit jewellery. Families will continue to divide estates. Couples will continue to purchase engagement rings. Owners will continue to sell unwanted gold, diamonds and watches.
What may change is where they choose to go for assistance.
The traditional model of visiting a retail jeweller to purchase a new item is only one part of the market.
There is an expanding need for:
- Independent diamond identification and grading.
- Professional valuations and assessments.
- Estate jewellery evaluations and liquidation.
- Gold and precious metals purchasing.
- Assistance with inheritance and family divisions.
- Advice on the differences between natural and laboratory-grown diamonds.
- Specialist knowledge when selling significant jewellery and gemstones.
Businesses that can provide these services under one roof are particularly well positioned to serve changing consumer requirements.
What does this mean for consumers?
For anyone purchasing or selling jewellery, the changing industry makes it more important than ever to understand who they are dealing with.
When selling valuable jewellery, do not assume that the first offer you receive represents its true market value.
A diamond may have a value beyond its metal setting. An antique ring may have historical or collectible significance. A substantial gold piece may contain gemstones that should be assessed separately.
Similarly, when purchasing a diamond, consumers should understand the distinction between natural and laboratory-grown stones and the very different markets in which they trade.
Independent technical assessment, transparency and experience should be important considerations.
The future belongs to businesses built on knowledge, trust and experience
The decline in the number of American jewellery businesses is another indication that the traditional jewellery trade is undergoing a major transformation.
Australia is experiencing many of the same structural pressures, compounded by an expensive operating environment and increasingly cautious consumers.
It would be premature to declare Australia the worst-performing developed country for jewellery businesses without comparable international figures. However, the available Australian retail and insolvency data clearly demonstrate the severity of the challenges.
The industry is not necessarily disappearing. It is changing.
Businesses that rely entirely on expensive premises, high inventory commitments and traditional retail margins may find the coming years increasingly difficult.
Those that combine technical expertise, established relationships, transparent pricing and a broader range of services may be better positioned to adapt.
At DCLA, our philosophy has always been that knowledge and experience matter.
With three generations of industry knowledge, specialist diamond laboratory expertise and a business built around buying, assessing and understanding precious metals and jewellery, we believe that the future belongs to businesses that offer more than simply a product for sale.
In an industry where trust is becoming increasingly important, experience is not just an advantage. It is the foundation of a sustainable business.
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