【Seoul, South】‘Does carrying a luxury bag make money? Better to buy a gold bracelet’… Eyes turn to ‘high jewelry’

As prices of precious metals like gold and silver continue to soar, jewelry consumption is showing a polarization trend. While the preference for safe-haven assets strengthens, leading to increased demand for so-called ‘gem tech’ in the high-end jewelry market, in the mid-to-low-priced market, light gold and silver jewelry with adjusted metal content are gaining popularity.
According to industry sources on the 26th, the international gold spot price traded on the New York Commodity Exchange (COMEX) broke through $5,000 per troy ounce (31.1g) for the first time in history as of the 25th (local time). This represents a sharp 82.61% surge compared to January 27 last year ($2,738.40).
The rise in silver prices is even steeper. As of the 23rd, the spot price reached $101.33, surpassing $100 for the first time in history. Compared to last year’s low of $29.23 (April 4), this is a 246.66% increase in just nine months.
As precious metal prices skyrocket, jewelry consumption is taking on a stronger character of ‘value consumption’ beyond mere adornment. It’s consumption driven by ‘value for money’ based on the concept of tangible assets that preserve value.

In the premium market, in particular, consumption choosing high jewelry over luxury handbags is increasing. The fact that global luxury brands have aggressively raised product prices over the past three years, narrowing the price gap with entry-level high jewelry, has also had an impact. High jewelry using high-purity gold (18K and above), diamonds, and rare gemstones, perceived as having low depreciation and serving as an inflation hedge, has emerged as an alternative for high-value consumption.
In reality, high jewelry sales at Department Store A this month (as of the 19th) increased by 44.7%, centered around the so-called ‘Big Four’ brands: Cartier, Tiffany, Bulgari, and Van Cleef & Arpels. Department Store B also recorded a 45% growth rate during the same period. This is more than double the growth rate of luxury handbag sales, which remained in the 10-20% range.

Meanwhile, in the fashion jewelry market, alternative consumption that reduces price burden is expanding. Products that adjust weight or differentiate design in response to rising gold and silver prices are gaining popularity.
According to an analysis by the fashion platform Ably, search volume for ‘gold-colored earrings’ in the fourth quarter of last year increased by 51% compared to the previous year, and ‘gold-colored bracelets’ by 40%. Search volume for ‘gold-colored necklaces’ and ‘gold-colored rings’ also increased by about 20% each, indicating heightened interest in alternative jewelry.
At the actual purchase stage, the growth of the silver product category was notable. From the 1st to the 18th of this month, transaction amounts for ‘silver bracelets’ on Ably increased by 115%, and ‘silver necklaces’ by 55%. In terms of search volume increase rate on Musinsa over the past month, silver rings (108%), silver bracelets (67%), and gold rings (27%) also ranked high.
The preference for cost-effective jewelry is evident. The Yeroor brand, operated by LF’s Yeroor Korea, saw its official mall repurchase rate exceed 35% after introducing lab-grown diamonds. Vyer, centered on 92.5% sterling silver products, is also seeing increased demand, and sales of 14K gold products sold on W Concept increased by 32%.