Japanese consumers are increasingly investing in luxury jewelry, leading to record sales. In the first half of 2026, sales of gems, precious metals, and artwork at Japanese department stores surged by 19% year-over-year, reaching \330 billion (approximately $2 billion). This marks the highest sales for this period since records began in 2008, significantly outpacing the 3.2% growth in overall department store sales.
This trend is largely attributed to the weakening Japanese yen, which has fallen to nearly \164 per dollar—its lowest level since the 1980s. Alongside a 1.6% rise in core consumer prices in June (excluding fresh food), consumers are shifting spending towards assets perceived as better stores of value. Analysts like Catherine Lim of Bloomberg Intelligence suggest that some consumers view these items as a potential source of appreciation, especially as the yen depreciates.
The surge in demand is primarily driven by domestic shoppers, rather than inbound tourists, as evidenced by the similar 3.2% increase in duty-free sales at department stores. Japanese consumers are showing a preference for branded jewelry over handbags, becoming more selective with discretionary purchases. This behavior is beneficial for luxury groups with strong jewelry portfolios, such as Cartier-owner Richemont, which saw a 20% sales jump in Japan, and Gucci-owner Kering SA, which reported a 57% rise in Japanese jewelry sales in the first quarter, contrasting with a 14% decline in its fashion and leather goods business in the country. Some consumers are increasingly holding 5% to 10% of their assets in gold instead of cash.
