Wealthy Americans Buy Jewelry as COVID-19 Restricts Travel Opportunities

August Jewelry Sales Amount Increased by 10% Compared to the Same Month Last Year

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Amid the global economy taking a direct hit from the COVID-19 pandemic, the purchase of high-end jewelry by wealthy Americans has actually increased.

According to CNN Business on the 19th (local time), jewelry sales in the U.S. temporarily declined at the beginning of the COVID-19 pandemic but quickly recovered, with sales reaching $5.25 billion (approximately 5.98 trillion KRW) in August, about a 10% increase compared to the same month last year.

Signet Jewelers, the operator of jewelry specialty companies James and Kay Jewelers, saw its August sales rise 10.9% compared to the same month last year.

De Beers’ diamond brand Forevermark has also maintained double-digit sales growth since July compared to the same period last year.

However, Tiffany, which has a high proportion of business targeting travelers, experienced a decline in sales in August and September.

Experts analyze that while the middle and low-income classes have faced difficulties due to the COVID-19 pandemic, the wealthy class’s economy has rapidly recovered, deepening polarization and creating a 'K'-shaped economic recovery trend that has also influenced jewelry sales.

Additionally, the travel restrictions caused by COVID-19 are believed to have stimulated jewelry demand.

Since people cannot travel for various anniversaries, they are spending travel funds on purchasing jewelry instead.

Steven Lussier, Vice President of De Beers, said, "Travel is the biggest competitor to the jewelry industry," adding, "People usually think of romantic trips for various anniversaries, but since travel became impossible due to COVID-19, they are buying diamonds with that money instead."

Jeffrey Gennette, CEO of Macy’s, also analyzed, "The situation where people cannot travel has led to jewelry sales exceeding expectations," and "There is also an aspect where economic anxiety has encouraged jewelry sales as it is perceived as a safe asset."