I disagree with the view that this is powergaming of some sort. The player took that craft to represent the character's previous skills and life before becoming an adventurer. It's completely realistic to expect that having proficiency with jewelry allows him to increase the value of jewelry with some work. Arguing the opposite is like saying someone proficient in Survival doesn't know how to track, or someone proficient in Stealth doesn't know how to be sneaky, "because that's OP". The player had limited proficiency slots when building the character, he put them into this tool set, and should be allowed to use them for an advantage of some sort.
That said, like using those other skills, it shouldn't be an automatic win. First, the player needs downtime to work on it - it can't be something done on the trail. To improve the value of something, it needs time and the appropriate workshop and tools to do so. The 5gp a day assumes that the character has access to the right resources and spends 8 hours a day working on it - like a job. So if they are in town for a week, and the guy wants to spend 5 days of that working on a necklace to make an extra 25gp, *I* don't see a problem with that. The other PCs should also be doing something to make money or gain other advantages at the same time - working jobs, following leads, etc. Earning 5gp a day isn't going to break the bank. And it's 5 days he's not doing something else productive, so that's the trade off. After all, time is money...
If you want to make life interesting, add an element of risk. For each day he works on it, roll a d20 - on a 1, he breaks the thing beyond repair, and not only loses any value he put into it, but cuts it's original value in 1/2; it's now only good for scrap. To me, that's an interesting choice - I can take the chance to make some money at the cost of time, but I run the risk of butching it and losing it all. Go big or go home, as they say.
But whatever you do, DON'T say "no" to this. Find a way to make it work - players need to be given the opportunity to use the character choices they made, otherwise the whole thing is pointless.