Japanese consumers are buying jewelry in large quantities to hedge against the risk of the depreciation of the Japanese yen.

Inflation remains high and the Japanese yen continues to weaken. Japanese people are rushing to buy luxury jewelry, using it as a safe-haven asset to hedge against inflation, driving a significant increase in jewelry sales. In the first half of 2026, sales of gemstones, precious metals, and art in major department stores in Japan increased by 19% year-on-year, reaching 330 billion yen, marking the highest record for the same period since statistics were available in 2008. The depreciation of the yen combined with rising core prices has caused a shift in consumer spending habits, with people more willing to purchase jewelry assets with stronger preservation value.