Japan's Weak Yen Turns Jewelry into a Hedge

Japanese consumers are turning to jewelry as a hedge against the weak yen. Department-store sales of gems, precious metals, and artwork rose 19% year over year to ¥330 billion in the first half of 2026, the highest level since records began in 2008.

The trend is driven by local demand, not tourist spending, with duty-free sales also rising 3.2%. This suggests that Japanese shoppers are buying jewelry as a way to park value while the yen stays weak.

Satohi Maehara, president of 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. As the yen is losing value, people are increasingly turning toward gold.'

Kering, the owner of Gucci, reported that Japanese jewelry sales rose 57% in the first quarter of 2026, while its fashion and leather-goods business in Japan fell 14%. This indicates that Japanese consumers are favoring items that can be framed as both indulgent and resilient.