Industry has already felt the pinch and now the financial crisis has hit the luxury sector -- at least, according to European luxury goods manufacturers such as Richemont and Ferretti.

Grit Hofmann paid a visit to the town of Pforzheim, the traditional capital of Germany’s gold and jewellery industry, to see how its faring. For now, the mood is still optimistic -- but will Pforzheim really be able to weather the crisis?