Japanese Consumers Drive Record Luxury Jewellery Sales Amid Weakening Yen

Japanese consumers are driving up luxury jewellery sales to record levels as they seek safe havens from inflation and the weakening yen. According to data from the Japan Department Stores Association, sales of gems, precious metals, and artwork at Japan's department stores climbed 19% in the first half of 2026 from a year earlier to ¥330 billion ($2 billion), the highest sales for the period since records began in 2008.

The economic backdrop is prompting consumers to shift spending toward assets they see as better stores of value. Satoshi Maehara, president at Tokyo-based jewellery maker Happiness and D Co., said: 'It's becoming more normal for people to hold 5% to 10% of their assets in gold, rather than cash.'

Happiness and D has traditionally focused on selling imported luxury brands and high-end watches but shifted its business toward jewellery to capitalise on growing demand for gold and precious metals. Rising interest in holding gold as an asset has become a major tailwind for the company's business.

Jewellery sales have far outpaced overall department store sales, which grew 3.2% over the same period. Duty-free sales at department stores also rose 3.2%, suggesting the surge has been driven largely by domestic shoppers rather than inbound tourists.