Japanese Shoppers Fuel Record Luxury Jewellery Sales Amid Weakening Yen

Japanese luxury jewellery sales have hit a record high due to domestic shoppers seeking safe havens from inflation and a weakening yen. According to data from the Japan Department Stores Association, 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 ¥330 billion (US$2 billion).

This growth is largely driven by domestic demand for jewellery, which has been increasing as consumers turn towards assets they see as better stores of value. The Japanese yen has weakened to nearly 164 yen per dollar, its lowest level since the 1980s, while core consumer prices rose 1.6% in June.

Satoshi Maehara, president at Tokyo-based jewellery maker Happiness and D Co., attributes the rising demand for gold and precious metals to consumers seeking safer assets as the yen loses value. The company has shifted its business towards jewellery to capitalize on this trend.

Rising interest in holding gold as an asset has become a major tailwind for the company's business, according to Maehara. Japanese consumers are increasingly favouring branded jewellery over handbags due to higher living costs making them more selective about discretionary purchases.