Japanese Consumers Flock to Luxury Jewellery Amid Inflation and Weakening Yen

Japanese consumers are driving luxury jewellery sales to record levels as they seek safe havens from inflation and a weakening yen. The country's department stores reported a 19% increase in sales of gems, precious metals, and artwork to ¥330 billion (S$2.6 billion) in the first half of 2026.

This surge is largely driven by domestic shoppers rather than inbound tourists, with duty-free sales at department stores rising 3.2%. Satoshi Maehara, president of Tokyo-based jewellery maker Happiness And D, attributed the trend to consumers shifting their spending towards assets they see as better stores of value.

Maehara noted that holding gold is becoming increasingly popular among Japanese consumers, with many opting for gold and precious metals over cash. 'It's becoming more normal for people to hold 5% to 10% of their assets in gold,' he said.

The trend has also benefited luxury brands such as Cartier-owner Richemont, which reported a 20% year-on-year increase in sales, with Japan seeing the highest growth among all geographical regions. Gucci-owner Kering SA also saw Japanese jewellery sales rise 57% in the first quarter.