Jewelry Trends in America: New Designs for Old Jewels

Spur, the jewelry brand that revives precious family heirlooms, is capturing significant market niches in America thanks to Instagram

Adapting the style and use of a family heirloom: The trend that's boosting sales for small jewelers in the United States

In the United States, independent jewelers are witnessing an unprecedented boom in demand for redesigning family heirloom jewelry. The purchasing tendencies of the new generation of customers are changing, with many willing to pay up to $15,000 to give inherited jewels new custom designs. Although restoring old stones has long been practiced in the jewelry industry, even in America, a younger generation of Instagram-savvy jewelers has now brought this service into the spotlight. 

During the lockdown, Mindy Trotta dug out from her memory drawers a diamond watch inherited from her mother, a Hungarian Holocaust survivor who lived through Auschwitz and passed away in 2002. For 20 years, Mindy had never worn the flashy watch because of its outdated design, but she had no intention of selling it, not only because it would likely be undervalued, but especially due to its priceless sentimental value. This sparked a desire to reuse the diamonds set in the watch in a more contemporary piece of her liking. Mindy decided to trust a brand she found on Instagram, Spur: a startup based in New York, specializing exclusively in heirloom jewelry redesign. The co-founder jewelers of Spur, Simone Paasche and Sophie Fader, extracted the gemstones and re-set them into an art deco bracelet, which Mindy now wears regularly. - Every time I wear it, it feels like my mother is with me. I probably could have found a jeweler on 47th Street (in New York), but I trusted them... and I didn't need references because they were all there on Instagram – Mindy stated.

Spur, founded in 2018, has seen its revenue triple in the past year after tapping into a rapidly growing niche market and deciding to exclusively offer restyling services for outdated jewelry. However, Spur is not the only American jeweler to have taken this path. Over the past year and a half, many jewelers across the United States have been specializing in remodeling unused jewelry into new pieces with custom designs. Among them are also Brent Neale; Caitlin Mociun; Bario Neal and Retrouvai by Kirsty Stone, who, thanks to this new market positioning in jewelry, are seeing their revenues grow.

Jewelry Sales in the United States are "Skyrocketing"

This trend fits into a generally positive climate that extends across the entire jewelry sector in the United States. According to Mastercard SpendingPulse, sales of fine jewelry during the holidays increased by 32% compared to 2020, with all jewelry seeing a 26% jump compared to pre-Covid 2019. Signet, owner of the Zales and Jared store chains, broke all sales records during the holidays, with revenues growing by 30% to $2.4 billion. The U.S. revenue of major global fine jewelry brands (such as Cartier, Van Cleef & Arpels and the Italian Buccellati) increased by 67% to approximately $5.8 billion during the first fiscal year of 2021.

A New Market for Young Generations of Jewelers Skilled in Social Media Marketing and E-commerce

The return to family values also extends to family jewels and the eternal value that a piece of jewelry passed down through generations carries. Therefore, new generations are digging up old family jewelry that shines again thanks to new, more wearable designs, declared Stone, founder and designer of the brand Retrouvai. – The restyling service for used jewelry, which requires a lot of time, great craftsmanship, and special equipment, doesn't represent a commercially viable solution for the big players in the industry, who have less flexibility to handle these projects. - remarked Hedda Schupak, an analyst specializing in the jewelry sector.  - The art of reworking old jewelry is instead sparking a lot of interest from small and independent jewelers seeking business opportunities that bring growth. This is evidenced by the growing number of people looking for a more sustainable approach to jewelry, as well as customers willing to spend up to $15,000 for a family heirloom refurbished into a new custom piece.

Restoring old stones has been a long-standing practice in the jewelry industry in America. But now, a younger generation of Instagram-savvy jewelry designers has brought this service into vogue, offering a variety of price ranges that make it more accessible to younger customers. - said Amanda Alagem, Accessories Director of Harper's Bazaar. Instagram has spotlighted a jewelry market niche capable of attracting new consumers now aware that they can afford these unique and exclusive luxury items, - said Neale. With Instagram becoming the new treasure trove for precious items, less affluent buyers no longer have to search the wholesale jewelry market, where it is often difficult to find someone to trust. - Every time I post a 'revisited' piece of jewelry on Instagram, the feedback is incredible. - added Neale. This rapidly growing phenomenon of requests for restyling old family jewelry is partly due to the historical period of restrictions: people spend more time at home and dedicate themselves more to tidying up.

American Women Want Jewelry That Accompanies Them in Their Daily Lives

The majority of Spur's clients are those who have inherited family jewelry they don't wear due to outdated design. Fader has worked with 1960s brooches, while Neale has handled cocktail rings with giant stones, like a 31-carat sapphire ring, which she cut and set into a necklace. – In our grandmothers' time, these huge cocktail rings with stones like aquamarine were in fashion in America. - Neale continued. - The price of an aquamarine back then, compared to what it is worth today, makes it a truly precious jewel. The fact remains that my clients don't see themselves in these outdated designs and want something personalized and more wearable.

Sustainability is Becoming an Increasingly Important Prerequisite in the World of Contemporary Jewelry

The trend of reusing inherited jewelry in new customized versions is also driven by a greater awareness of the environmental impacts of the jewelry industry. The world of contemporary jewelry embraces environmental and social issues, creating precious items from recycled or 'ethical' sources, perfectly traceable and transparent. By 2025, according to the State of Fashion: Watches and Jewellery report by BoF and McKinsey, concern over climate change and more responsible purchasing will influence about 30% of sales in high-end jewelry.

While the segment of buyers fueling the custom jewelry business is an older audience (Millennials and Gen X), experts believe that younger generations, who will soon gain purchasing power or inherit a piece of jewelry, are also trailing this trend. After all, Gen-Z is already attracted to the secondhand fashion industry. - The idea of not extracting new gems, and instead using existing ones, will attract younger buyers more attuned to sustainability. - Schupak stated.

How to Make the Restyling of Used Jewelry More Commercially Scalable

The process of restoring old pieces into new ones, however, can be lengthy and costly. Stone reported that the cost of her creations averages from $2,000 to $4,000, while those by Spur range from $500 to $3,500. - It is truly time-consuming and requires artisanal know-how, - Neale stated. - You need to ensure there is nothing wrong with a stone. And if it has an almost invisible internal fracture, you might break it during resetting. It's much easier for me to design a piece and create multiples of it.

Some jewelers are trying to make the service more viable commercially. Spur has created templates on its website, where family heirlooms, like vintage coins or diamonds, can be inserted into pre-designed molds, offering quicker solutions that don't require lengthy consultations. Neale has created rings by repurposing vintage gemstones from the 1980s, which she bought secondhand. – Even without the sentimental value of family heirlooms, buyers have still been enthusiastic about giving new life to precious materials. 

What Will the Big Players in Jewelry Do in Response to This New Trend in the American Market?

The downside is that major players in high-end jewelry like Signet or Tiffany are unlikely to make custom pieces a core business, despite the strong demand. Unique pieces don't yield the same high margins as new models sold at retail. Additionally, change in the jewelry industry is very slow. However, it is expected that some big companies might attempt to incorporate this service in some way, as reworked jewelry and the jewelers who create them continue to attract attention on social media. Jared last year launched custom jewelry shops in 19 of its 200 stores, and according to Schupak, the redesign of heirlooms is also coming. - As jewel designers gain more market recognition, recycled materials will become more valuable - Schupak stated. - It will require more equipment, but it will be a way for companies to position themselves as jewelry makers of custom-made creations.

It is estimated that jewelry sales in the American market will increase from $42 billion in 2020 to $60 billion by 2025. Diamond jewelry still represents 54% of jewelry purchases in the United States. Contributing to the revenue growth are the e-commerce sales that continue to rise in a market already accustomed to luxury online shopping.

What is the Value of the Jewelry Market in the United States for Made in Italy

As confirmed by Istat data processed by the Confindustria Moda Study Center for Federorafi, the United States is leading the recovery in exports, confirming itself as the top destination market. In the first half of 2021, the value of exports to the USA of Italian-made gold, silver, and jewelry increased by 118.9% compared to the first half of 2020, exceeding 500 million euros and reaching a 15.7% share of the total export in the category.

But analyzing the trends and future prospects opens new promising opportunities for Italian companies in the jewelry sector looking to export to the USA market. As in every other sector, digitalization will dominate strategies and evolutions, starting with e-commerce and social media. For jewelry, McKinsey analysts envision a greater presence of brands, also because currently about 80% of jewelry sold worldwide is unbranded. There is ample space for outsiders and startups, thanks to online word-of-mouth.