Japan’s jewelry sales climbed 19% in the first half of 2026, hitting ¥330 billion ($2 billion), the highest mid-year total since tracking began in 2008. The boom follows the yen’s drop to ¥164 per dollar, the weakest level since the 1980s, and a 1.6% rise in core consumer prices, prompting households to shift assets away from cash. Department-store sales overall grew just 3.2% in the same period, but jewelry demand outstripped broader retail trends, with duty-free sales also up 3.2%, indicating stronger domestic consumption rather than tourist-driven purchases.
Satoshi Maehara, president of Tokyo-based retailer Happiness and D, observed that customers now regularly allocate 5% to 10% of their wealth to gold and jewelry instead of cash. The retailer has adjusted its focus from imported luxury watches to precious metals and jewelry, aligning with changing consumer priorities. For some buyers, purchases like Yuki Hayakawa’s ¥600,000 diamond and gold necklace from Chaumet serve as both personal luxuries and inflation hedges. Hayakawa pointed to repeated price increases by luxury brands as a key reason for her earlier purchase decision. She also noted that the piece’s dual role as both an investment and a cherished possession made it a more compelling choice than traditional savings.
Industry analysts note a clear preference for jewelry over handbags, viewing it as a more stable and potentially appreciating asset. Bloomberg Intelligence found that branded jewelry now attracts stronger interest as households cut back on discretionary spending. Global luxury groups are benefiting: Richemont, which owns Cartier, reported a 20% year-over-year sales increase in Japan, with jewelry leading the growth. Kering, parent company of Gucci, saw jewelry sales rise 57% in the first quarter, even as its fashion and leather goods business declined 14%. The contrast highlights how jewelry’s perceived dual value, both as a luxury item and a store of wealth, is driving its outperformance in an otherwise mixed retail environment.
