From Scythian treasures to modern brands: history, interesting facts and problems of the jewelry market in Ukraine

On January 31, the world celebrates Jeweler’s Day – a professional holiday of craftsmen who turn precious metals and stones into works of art. For most countries, it is an occasion to honor the traditions of the jewelry art and celebrate the contribution of this industry to the economy. However, for Ukraine today it is not only a holiday, but also a symbol of the struggle for survival in extremely difficult conditions. A few years ago, the jewelry business in Ukraine was developing steadily: people bought jewelry for weddings, anniversaries, special events, or just to please themselves. The market was alive, saturated, with constant demand. But the war radically changed the situation.

Today, the Ukrainian jewelry business finds itself in a real international storm and internal pressure. On the one hand – the war, which reduced the purchasing power of citizens, complicated logistics and led to the closure of many factories. On the other hand, there are new tax changes and state control, which force many masters to work “in the shadows”, avoiding excessive financial burden.

The state of the Ukrainian jewelry market

During the three years of hostilities, the demand for luxury has significantly decreased, and this is quite understandable, because Ukrainians invest more in their security and purchasing the most necessary things, rather than in gold and diamonds. The first months after the invasion were a real shock for the jewelry market. Sales collapsed to almost nothing – people did not think about gold or diamonds when they had to save lives, evacuate or spend money on urgent needs.

Later, the situation gradually began to level out. During 2022, sales of jewelry decreased by 40-50% compared to the pre-war level. Despite the difficult times, the market gradually revived. 2023 showed a slight increase, although the overall level of sales was still lower than the pre-war level by about a third. In 2024, demand stabilized at 70% of the pre-war level, which gives hope for a gradual recovery in 2025.

However, even this relative stability does not mean a return to former luxury. Shoppers have become much more cautious about spending, and the average check continues to decline. This is especially noticeable in the diamond jewelry market, where the drop is an average of 35% from the 2021 level.

The problems did not end there. A sharp increase in the price of precious metals in the hryvnia hurt demand. Due to the devaluation of the hryvnia and the increase in the cost of metals, jewelry has become much less affordable for buyers. Today, the price of 585-grade gold is 2,500 hryvnias per gram, and 999-grade gold reaches 3,500 and higher, while before the start of the full-scale war, this figure was only 1,800 hryvnias for 999-grade gold. Jewelry never belonged to the category of necessities, and in the conditions of war, when every hryvnia is spent with maximum care, people have become even more cautious in their purchases. If earlier jewelry was bought for special events or simply as an investment, now sales are falling and the average check has decreased significantly.

If the war affected demand, new regulatory policies began to change the rules of the game for manufacturers. An important event for the jewelry business was the abolition in December 2023 of the upfront tax on state pension insurance when stamping products. This tax has been in effect for more than ten years and has greatly complicated the work of jewelry companies, forcing them to pay the tax even before the product reaches the buyer. Now the financial risk for manufacturers has decreased – if the jewelry does not find an owner, it can be remelted to create a new product without previous costs. Such a decision of the state has become a significant relief for the jewelry market, especially in conditions when many manufacturers work for the domestic market and are forced to compete for each buyer.

At the moment, Ukrainian manufacturers are mainly focused on the domestic market, so the key task for them is not only to attract new buyers, but also to maintain the trust of regular customers. At the same time, the modern jewelry market in Ukraine cannot exist without an active presence in social networks. Brands that previously relied on luxury boutiques and traditional sales channels are now looking for audiences on Facebook, Instagram and TikTok. The consumer has become more demanding – he is more interested in the history of the brand, the process of creating products, uniqueness and the social component. Jewelry companies are forced to adapt to new realities, turning to influencers and bloggers to help them expand their audience and attract new customers.

It should be noted that the situation on the jewelry market became more complicated at the end of 2023, when the National Bank of Ukraine introduced a ban on the sale of bank metals to legal entities. This decision effectively deprived jewelers of the opportunity to legally purchase the necessary materials, which led to serious interruptions in production. If earlier companies could plan purchases and conduct work in predictable conditions, now they are forced to look for workarounds or completely close down the business.

The jewelery industry has always been cost-intensive due to the cost of materials, but recent tax changes have created additional pressures that could ultimately undermine the sector. Manufacturers are forced not only to deal with economic instability, but also to count every penny in order to withstand increasing financial burdens. Small workshops are closing one by one, large manufacturers are cutting staff, unique specialists are out of a job. The loss of these professionals means that the once thriving jewelry industry may disappear or fade into the shadows.

Another problem that is rapidly gaining momentum is jewelry tourism. More and more wealthy Ukrainians are going abroad, where they can buy jewelry without additional tax surcharges, higher prices for metals, and difficulties with logistics. As a result, money that could have remained in Ukraine goes to other countries, and the local market loses both customers and development opportunities.

If we talk about international trade, the situation looks even more complicated. Due to the war and problems with logistics, the export of Ukrainian jewelry almost stopped. Access to the markets of Europe and China, which could become promising for the development of the industry, is currently significantly limited. At the same time, the import of jewelry products to Ukraine not only did not stop, but also increased. If in 2022 only 2 tons of finished jewelry were imported into the country, then in 2023 this indicator increased to 4 tons – this was the level of imports in the pre-war years 2019-2020, in 2024 the trend remained unchanged.

This means that Ukrainian manufacturers have to compete not only among themselves, but also with foreign companies that have better opportunities for development due to stable economic conditions in their countries. Despite a certain stabilization of the market, the prerequisites for significant growth in the near future are not visible. The purchasing power of Ukrainians remains low, and many potential customers have gone abroad. With these factors in mind, the demand for jewelry is likely to decline in 2025.

However, it was not only demand that became a challenge for the jewelry business. A 20% gold import tax came into effect on January 1. A draft law has also been prepared, which proposes to increase the military tax for jewelers immediately from 5% to 30%. It is clear that all these factors will significantly affect the jewelry market. At the same time, cheap smuggling can displace legal producers, and the quality of jewelry will become an even bigger lottery. Under such conditions, the threat of turning Ukraine into a “black market” for gold is growing every day.

Therefore, the jewelry business has always played an important role in the economy, filling the budget and creating jobs. However, now, instead of support, he receives another blow that could lead to the complete destruction of the industry. Producers who tried to work transparently and officially are forced to either close their businesses or go into the “shadows”, risking being punished for trying to survive.

Despite everything, Ukrainian jewelers continue to fight for survival. Some companies, such as SOLO for Diamonds, try to maintain production by working exclusively with Ukrainian diamonds and paying taxes at every stage of jewelry creation. They invest in production, launch charity initiatives, support the army. But even such brands, which are trying to adapt to new conditions, understand: without changes at the level of state policy, the industry simply cannot survive.

At the same time, Ukrainians continue to buy jewelry, changing their approach to it. Now, not just beautiful jewelry or classic engagement rings are in trend, but those products that have a symbolic meaning. The demand for military symbols, engraved pendants with dates or coordinates of memorial sites, pendants with shell fragments, church charms, patriotic pendants and individual engravings are all displacing traditional products.

History of jewelry craft and interesting facts

Jewelry is not just about glitz and status. It is about the human obsession with beauty, the desire to leave a mark in time and the ability to see magic in a piece of metal or stone. His story began not in expensive boutiques, but in caves, among fire and bones. Long before people invented writing, they already decorated themselves. The first jewelry of that time was not made of gold and silver, but of bones, teeth, shells and stones. It was not just a decoration – each decoration meant something: protection from evil spirits, a symbol of power or simply a trophy won in battle. Bronze and iron foundry appeared later. And then the real magic began. People realized that metal can be melted, cast into forms, engraved. This is how the first rings, bracelets, and amulets were born.

The Egyptians were the first to make jewelry a real art. They adored gold, believed that it was given by the gods and could protect them in the afterlife, and they decorated not only themselves, but also their tombs with it. Anyone who has seen Tutankhamun’s mask knows that they have mastered it.

The Greeks went even further – they learned to make sophisticated, realistic jewelry inspired by nature. But the Romans started a fashion for precious stones and engraving. They were the first to start making rings with seals, so that they could not only wear jewelry, but also sign documents with it.

In the Middle Ages, jewelry art became the business of the elite. Monks decorated icons and religious books with precious stones, and kings and knights competed to see who had the most luxurious sword or crown. Ordinary people were left with only amulets made of bronze and silver. It was also the time of alchemists who were looking for a way to turn any metal into gold. They did not succeed, but jewelers learned to improve the alloys and discovered many techniques that are still used today.

In the 18th century, jewelers secretly used poisonous metals such as mercury and lead to create brilliant enamels. Because of this, many masters were poisoned and had serious health problems.

The Renaissance era brought fashion back to sophistication: rings, brooches, pendants with filigree work became popular not only among the nobility. And with the development of colonies, new precious stones – sapphires, emeralds, topazes – flowed to Europe.

In the 19th century, with the beginning of the industrial revolution, jewelry became more affordable. If earlier they were made by hand and cost a lot of money, now factories began to produce cheaper analogues.

In the 20s of the 20th century, art deco appeared – a style that combined geometric shapes, bright stones and bold experiments. After the Second World War, a real boom in the jewelry industry began. Now it is not only about art, but also about big business.

It should be noted that jewelry art is not just the glitter of gold and precious stones, but a whole world of secrets, amazing stories and unexpected discoveries. Its history goes back thousands of years, and the most famous jewelry often hides incredible facts and legends.

Some precious stones that sparkle in jewelry today are born in extremely extreme conditions. Diamonds, for example, are formed at a depth of more than 150 kilometers, enduring tremendous pressure and temperature, before rising to the surface of the Earth as part of volcanic rocks. Even more mysterious is the mineral peridot (chrysolite), which can be found not only in the bowels of the earth, but also in meteorites that have flown in from space.

The world of sapphires is no less impressive. Although most people think of them as exclusively blue, these stones can actually be any shade from pale pink to deep green. The only exception is the red color, because exactly such corundums are called rubies.

Even five thousand years ago, the ancient Egyptians considered gold a gift of the gods and created luxurious jewelry from it, adding lapis lazuli and turquoise. They believed that gold amulets protect in the afterlife, so even pharaohs were buried with jewels so that they would continue to serve them even after death.

Medieval jewelers had their own secrets – they made luxurious red enamel by adding bone dust to it. In the 18th century, craftsmen worked with poisonous metals such as mercury and lead, which added a dazzling luster to enamels. Because of this, many of them were gradually poisoned and suffered from serious diseases.

The amazing world of jewelry art contains not only aesthetics, but also impressive technologies. The smallest man-made piece of jewelry is a tiny ring smaller than a human hair. It was made using nanotechnology and became a unique achievement in the combination of science and art.

Some jewelry has not only aesthetic, but also historical value. For example, the Marie Antoinette Pendant, which once belonged to the French queen, was sold at auction in 2018 for $36 million.

The most famous imperial gifts in the world are the legendary Faberge eggs, created by jeweler Carl Faberge. Made of precious metals, inlaid with diamonds and enamel, they have become a symbol of luxury and refinement, each of them is a real work of art.

Jewelry is not only pleasing to the eye, but can also become a lifesaver. The famous “Louis XV Pendant” with a ruby ​​and diamonds stopped a bullet that was about to hit the wearer. This case proves that beauty really can be unbreakable.

The gold from which jewelry is made has its secrets. It can even be extracted from ocean water, although this process is so expensive that it is not yet widely used.

Therefore, behind each diamond, sapphire or emerald, a thousand years of history is hidden, which makes jewelry art a real treasure of humanity. Moreover, each piece of jewelry is not just a jewel, but a story that can tell about culture, technology, craftsmanship, and even the fate of the people who wore it.

Jewelry art continues to surprise the world, the modern world dictates new trends: 3D printing, ecological materials, ethical mining of stones. The jewelry market in the world today is not only precious metals, stones and sophisticated brands. It is an arena where global crises, new trends, ethical dilemmas and people’s desire to wear something beautiful even when the economy is shaky collide. Some see jewelry as an investment, others as a status symbol, and some simply want something unique.

Diamonds were once an undeniable symbol of luxury, but today their status is less obvious. First, synthetic diamonds created in laboratories have become a real alternative. They are cheaper, cleaner and more ethical because they are not connected to conflict regions. Secondly, the traditional diamond market is experiencing a crisis due to sanctions against Russian stones. Big brands are abandoning Russian diamonds, and this is greatly changing the balance of power in the industry.

At the same time, the role of customization is growing. People want unique things. And this means that jewelry brands will offer more personalized solutions. At the same time, the middle segment suffers. Brands that played between luxury and mass market may either disappear or change their strategy. The modern buyer wants to know what he is wearing. The trend for ethical jewelry exploded – jewelry made of recycled gold, stones with a transparent history, ecological materials. Big brands now report where they get their raw materials from, because modern luxury cares not only about shine, but also requires a clean reputation.

Therefore, the global jewelry market will never disappear, but only gradually changes. The world of jewelry art is a history that spans thousands of years, changing but never disappearing. Regardless of economic crises, wars or changes in trends, jewelry always remains a symbol of beauty, status and sophistication. Demand for them may decrease in difficult times, but it never disappears completely.

Today, the Ukrainian jewelry industry is going through difficult trials, but even in the darkest moments of the war, craftsmen continue to create. They not only preserve traditions, but also adapt to the new reality, look for ways of development, support the economy and charitable initiatives. And although the war made its adjustments, I would like to believe that after its end, Ukrainian jewelers will get a new chance. The revival of an industry can become another symbol of a nation’s indomitability – just as after every storm the sun shines again, and after every hammer blow a work of art is born.