Canada has confronted a series of obstacles lately, marked by unparalleled worldwide incidents and political instability. These circumstances have shown up in the costs of gold, gasoline and food, prompting shoppers to ask when relief might come. The State of Trade 2026 report notes that shipments to the United States fell 3.7 percent last year, while sales to markets outside the U.S. rose 11.1 percent in overall export volumes, bolstering trade diversification significantly.
Canada has been working to expand its trade agreement network, with 15 free trade agreements (FTAs) with 51 countries representing 61 per cent of global GDP. The country has also been attracting more foreign direct investment, with $93.0 billion in investments last year. However, Canada-U.S. trade tensions have escalated, with the U.S. imposing tariffs of 50 per cent on nearly $30 billion worth of Canadian exports, including some jewellery and precious metals.
The Canadian jewellery industry has been impacted by these tariffs, as well as by the rising cost of gold. Gold prices reached a new record in early 2026, with prices approaching $4,000 per ounce in Canadian dollars. This has resulted in a sharp fall in gold jewellery imports, as customers reduced the frequency of purchases and shifted to lighter-weight pieces. Silver prices have also increased, gaining momentum from both investment demand and industrial usage.
Despite these challenges, the Canadian jewellery industry remains resilient. Retailers are using virtual consultations and AI-driven tools to improve product discovery, while financing options such as buy now, pay later are helping to increase conversion rates. A seamless online and in-store retail experience has never been more important for jewellers, with 80 per cent of purchases still happening in person.
The Buy Canadian movement continues to influence Canadian buying habits, with consumers preferring to shop at small businesses. Brand activations in the form of in-person events have helped to counter digital fatigue, and businesses that stay visible, build authentic relationships, and clearly communicate their value are more likely to win customers. As technology continues to evolve, people remain a key component in the customer journey, with 90 per cent of respondents saying they would return to a store where they’ve received exceptional service from knowledgeable staff.
Technology and the Customer Journey
AI technology has become increasingly important in the retail industry, with retailers using it to analyze customer preferences and shopping behaviors. This allows for more accurate product suggestions and personalized marketing. However, retailers must also prioritize responsible AI and compliance, with the Canadian Jewellers Association monitoring requirements and engaging with policymakers on behalf of jewellers.
Consumer habits for discovery on the internet have changed, with 73 per cent of respondents using AI to learn more about brands and products. Retailers who seize AI’s full potential are likely to be those who blend technological ingenuity with human intuition, creating a future where businesses can be both smarter and more resilient. Social media has become the “front door” for discovery, with businesses becoming “creators” and content playing an essential role in bringing in customers and driving sales.
Engagement isn’t limited to post likes and shares, with the comment section becoming an integral part of the marketing strategy. Responding to messages, whether positive or negative, is essential, with 89 per cent of customers more likely to make a purchase because they feel considered and heard. AI can also help streamline content creation, making it easier for small teams to maintain a strong presence.
Crime continues to impact the Canadian jewellery industry, with the total number of jewellery crimes recorded increasing by 16 per cent in 2025. Total dollar losses also increased by 62 per cent, with sustained high gold values and an escalating pattern of high-value robbery events being significant contributing factors. The Jewellers Vigilance Canada 2025 Annual Crime Report highlights the need for jewellers to be aware of these trends and take steps to protect themselves.
As of March 2026, FINTRAC has expanded its oversight, examination, and enforcement powers, with significantly higher administrative monetary penalties for non-compliance. Jewellers need to understand and respond to requests from FINTRAC, as a failure to do so may result in penalties. The Canadian Jewellers Association will continue to monitor requirements and engage with policymakers on behalf of jewellers, ensuring they are prepared for universal enrollment and other compliance requirements.
Crime and Compliance
A security expert notes that robbery as a percentage of total events and total dollar losses continues to increase, reaching its highest level in the five-year dataset.
