Gem-Studded Watches Defy the Luxury Downturn

With a 39 percent tariff on Swiss watch exports to the United States, the industry’s largest market, looming over an already struggling sector, the glow of jewelry watches may be what guides brands through these dark times.

Historically investment-worthy and immune to fashion cycles, gem-studded designs have been popping up in new collections all year, almost all in the “price on application” category that indicates six figures or more. “Gems and jewelry are seen as recession‑resistant, hard assets, often considered as alternative investments,” said Jean-Christophe Babin, the chief executive of Bulgari and LVMH Watches. “They are not speculative investments.

“No one pretends they will triple in price in the next 10 years, but on the other hand, they won’t lose any value and probably will gain value,” he continued. “For sure a tangible value because gold is gold, diamond is diamond. And obviously in periods of uncertainty, it’s very reassuring.”

Watch groups have seen declines this year, with a Morgan Stanley report on the first half of 2025 estimating that watch sales at LVMH Moët Hennessy Louis Vuitton, the owner of brands such as TAG Heuer, Hublot and Zenith, were down 3.1 percent in comparison with the same period last year, while sales at Richemont, the owner of brands such as Cartier and Van Cleef & Arpels, fell 2.4 percent and at Swatch Group 1.1 percent.

Jewelry, in comparison, has been performing well, with a 2024 Bain & Company report on luxury goods stating there had been a 2 percent increase in global sales, which totaled 31 billion euros ($36.4 billion). The sector “held strong, especially in the high jewelry segment,” it said.