Japan’s Jewelry Boom Reflects a Flight From a Weakening Yen

Luxury jewelry is enjoying an extraordinary surge in Japan as consumers increasingly see precious metals and high-end pieces as a way to preserve value amid a weakening yen and higher living costs.

Sales of gems, precious metals and artwork at Japan’s department stores reached ¥330 billion ($2 billion) during the first six months of 2026, up 19% from the same period a year earlier. The figure marks the strongest first-half performance since the Japan Department Stores Association began keeping records in 2008.

The boom comes as the yen has fallen to around ¥164 against the US dollar, its weakest level since the 1980s. At the same time, core consumer prices, excluding fresh food, increased 1.6% in June. Together, the currency decline and rising prices are encouraging some consumers to move part of their wealth away from cash and toward assets they believe can retain their value.

“It’s becoming more normal for people to hold 5% to 10% of their assets in gold, rather than cash,” said Satoshi Maehara, president of Tokyo-based jewelry company Happiness and D. He said the company is seeing stronger demand as consumers respond to the yen’s depreciation.

Happiness and D, which historically concentrated on imported luxury brands and premium watches, has increasingly shifted toward jewelry and precious metals to take advantage of the changing consumer appetite.

The strength of the jewelry market is particularly notable because overall department-store sales increased only 3.2% during the first half. Duty-free sales also rose 3.2%, indicating that the jewelry surge is being driven primarily by Japanese consumers rather than foreign visitors.

For some shoppers, luxury jewelry has become both a personal indulgence and a perceived investment. Yuki Hayakawa, a 33-year-old office worker, spent about ¥600,000 from her bonus on a diamond and gold necklace from Chaumet, the luxury jewelry house owned by LVMH.

Hayakawa said repeated price increases by luxury brands influenced her decision to buy sooner rather than later. She also viewed the purchase as something she could enjoy for years while still retaining value.

The shift is changing the broader luxury landscape. Japanese consumers are showing greater interest in branded jewelry than handbags, according to Bloomberg Intelligence analyst Catherine Lim. As household expenses rise, shoppers are becoming more selective, favoring expensive products that they believe will last longer or potentially appreciate in value.

The trend is providing an important boost to Japan’s luxury sector, which has otherwise faced pressure from weaker inbound tourism, particularly amid a sharp decline in Chinese visitors caused by tensions between Tokyo and Beijing.

Global luxury companies with major jewelry businesses are already benefiting. Cartier owner Richemont reported a 20% year-on-year increase in sales in its latest quarter, with Japan recording the strongest growth among its geographic markets. The company said jewelry was a key driver of that performance.

Kering, which owns Gucci, also reported a sharp increase in jewelry sales in Japan, with the category rising 57% in the first quarter even as its fashion and leather-goods business in the country fell 14%.

Japan’s largest department-store operator, Isetan Mitsukoshi Holdings, said jewelry and watches remain among the strongest-performing domestic categories, alongside handbags, cosmetics and food. The company is expanding its selection of premium products and services to appeal to consumers willing to spend more on quality.

The shift reflects a broader polarization in Japanese consumer behavior, according to Kaoru Perkins, a Tokyo-based partner at Bain & Co. Consumers are cutting back on everyday discretionary purchases while remaining willing to spend heavily on products they consider durable and valuable.

That dynamic could make jewelry an increasingly important part of Japan’s luxury market. As the yen remains under pressure and shoppers become more conscious of purchasing power, gold, diamonds and other high-value goods are taking on a role that goes beyond fashion — becoming, for some consumers, a form of wealth preservation as well as a luxury purchase.