In August, US jewelry sales continued the growth trend of the past two years, while diamond jewelry sales were flat. In the meantime, one trend has not returned, while another has intensified.
August US Jewelry Sales & Market Trends
US specialty jewelry retailers’ revenue rose 4.5% in August, according to the latest Tenoris analysis. While this was below the 8% year-to-date increase, it extended the sector’s uninterrupted 23-month run of year-over-year revenue growth.
The nearly two-year stretch of improving sales is anything but expected. Consumers have faced runaway gold prices, rising energy costs, high interest rates, and other economic pressures, some of which are tied to the uncertainty surrounding the still-unresolved war in the Gulf.
Against this backdrop, many consumers continued to return to jewelry stores and increase their spending per item.
Of course, not all American consumers are participating in this growth. Unit sales declined 10% in August, a steeper decline than the 8% year-to-date decrease. Demand at lower price points continues to weaken.
Another aspect of this market development is that consumers who do purchase jewelry are buying more frequently, suggesting continued engagement with jewelry and self-adornment.
A Return of Tourism? Not Yet
Historically, US jewelry sales have followed a recognizable seasonal pattern. Sales typically increase in February, May, and November-December, corresponding with Valentine’s Day, Mother’s Day, and the holiday season. There has also historically been a rise in August, mainly driven by tourism. Consumers tend to spend more freely when traveling, and jewelry is one of the discretionary purchases that can benefit from that additional traffic.
That August seasonal pattern disappeared in 2020 with the onset of COVID-19.
Since then, jewelry sales have shown some growth in August, but not the distinct seasonal pickup historically associated with tourism. Before the latest August data came out, I hoped to see a clearer month-over-month increase in sales. That did not happen. While sales did rise, the increase was below the levels seen in recent years.
The takeaway is that US retailers, particularly those in heavily traveled cities, cannot yet count on a meaningful return of tourism-driven jewelry demand. For now, they need to remain focused on their local customer base.
No Shortage of 3-Carat Diamonds
A quick look at retailers’ loose diamond inventories shows a buildup in 3-carat diamonds. Year to date, inventory has increased by a high single-digit percentage, while sales have softened somewhat. It is possible that retailers are anticipating stronger holiday demand and are taking an opportunistic approach to purchasing.
For diamonds of 3 carats and larger, however, both inventory levels and sales continue to rise.
If anything, the data suggests that demand remains relatively steady and availability is not an issue. The rising inventory levels are evidence of that. So far this year, more diamonds of 3 carats and larger have been sold than during the January-August 2025 period. That is a positive development for retailers.
Another observation, primarily associated with lab-grown diamonds, is the continued rise in demand for oval-shaped goods. In August, more lab-grown oval diamonds were sold than rounds. Natural diamond purchases remain predominantly round, and the recent growth in demand for ovals appears to be moderating.
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