Japanese Consumers Fuel Record Luxury Jewellery Sales Amid Inflation

Japanese consumers are driving luxury jewellery sales to new heights as they seek a safe haven from inflation and the weakening yen. Sales of gems, precious metals, and artwork at Japan's department stores rose 19% in the first half of 2026 compared to the same period last year, reaching a record high of 330 billion yen (approximately $2.6 billion).

The trend is largely driven by domestic demand, with duty-free sales also increasing 3.2%. One consumer, Yuki Hayakawa, spent around 600,000 yen on a diamond-and-gold necklace from Chaumet, citing the desire to invest in something that will retain value over time.

Luxury brands like Cartier owner Richemont and Gucci owner Kering have seen significant gains in jewellery sales, with Japan being the top-performing region. The yen's weakness has made gold and precious metals more attractive to consumers, who are increasingly viewing them as a better store of value than cash.

Happiness and D, a Tokyo-based jeweller, is capitalising on this trend by shifting its focus towards jewellery sales. President Satoshi Maehara noted that people are becoming more comfortable holding 5-10% of their assets in gold, rather than cash.