Here is the latest sign of a strong economic rebound: People are buying more high-end jewelry such as diamond rings, gold necklaces and fine time pieces.
According to news from Edahn Golan Diamond Research & Data, purchases of fine jewelry in the U.S. is recovering with sales up nearly 10% this fall from the same time last year.
United States economic forecasters with Deloitte, one of the Big Four accounting organizations, is reporting that people are sitting on unspent income and saving at a very high rate.
Jewelry Instead of Traveling
Our Treasure Valley jewelers have a theory on why they are seeing sales coming back.
If you were having a wedding, a 10th or 25th wedding anniversary or a significant birthday, the romantic thing to do was to travel. According to Kara Dulhanty from Hal Davis Jewelers in Boise, she is seeing that those plans have changed this year.
“We have had several clients come in and express that their travel budget is frozen, and they are now picking up some of their most wanted jewelry items.”
In the U.S., diamond markets are seeing year-over-year double-digit growth each month since July.
With travel in a slump, diamond jewelry has been capturing some of the unspent travel budget. According to Simmons Fine Jewelry, “We have seen an increase in the purchase of brilliant natural diamonds and one of kind gemstones and fine time pieces,” Jake Simmons tells Boise Lifestyle.
At a recent retail conference, Macy's CEO Jeffrey Gennette noted how national sales of luxury items were "outpacing expectations."
"There's a lot of theories for that. I think one of them is that you've got customers who are not traveling. So those budgets that used to be spent on experiences are now going to kind of treating themselves with products," he recently told CNN Business.
Locally, Hal Davis is experiencing the same interest to invest in high-end jewelry.
“There is an entire group of consumers that purchase luxury items with the intent of enjoying the piece while it serves them, and then selling it later for profit. There is another demographic that truly wants to invest in a heirloom piece that will span generations,” Dulhanty explains.
Simmons says he is also seeing the same trend with engagement rings.
Because couples aren't doing destination engagements, they are investing in an even more fabulous diamond ring.
“Couples are seeing the value of their relationships more today than ever, purchasing rings and making commitments to each other,” Simmons said.
Since reopening after the summer lockdown, local jewelers Hal Davis and Simmons have noticed a few trends in diamond jewelry purchases.
It was not until July that they witnessed an uptick in diamond and watch sales.
“Christmas purchases always seem to be Rolexes, our Italian Gold line FOPE, classics like diamond stud earrings and pendants," Dulhanty said.
Customers are either upgrading the diamonds in existing jewelry they own, like an engagement or wedding ring, or buying a completely new piece. However, both Hal Davis and Simmons noted that 2020 has been a year of change, and many customers are wanting to purchase modern and fresh designs.
Both Hal Davis Jewelers and Simmons Fine Jewelry are anticipating very strong sales in fine jewelry for the holiday season and are prepared with an extraordinary inventory ready to help customers find the perfect gift and a lifetime investment.