The Covid19 Pandemic has wreaked serious havoc on the business world, wiping out hundreds of thousands of businesses and putting millions out of work.
Everyone assumed that watches, diamonds and jewelry would be last on their minds…girl, were they wrong!
“The shutdown has given the luxury watch market it’s moment” said Avi M, a New York watch dealer. “Demand for new and pre-owned luxury watches, particularly brands like Patek Philippe, Rolex and Vacheron & Constantin, have driven demand, sales and prices up this year like never before!”
The luxury business is experiencing a remarkable resurgence, during a time when most Countries are struggling to recover from a devastating economic blow.
Poor countries slow to recover from the global pandemic (AP)Fortunately, the diamond business has survived this economic tsunami. “Since diamonds are not funded by banks like typical businesses, the tight control by the rich owners keep the prices strong,” said Leor S, a Los Angeles diamond dealer.
“Big Diamonds are selling!”, he added. “A client I have cancelled their anniversary trip to Europe because of the pandemic, so they upgraded her 1.5 carat to a 4 carat for $ 50,000. She was so excited! It’s a meaningful gift of love and affection that she’s always wanted…a bit of joy during this crazy time”
June, July & August 2020 US retail jewelry sales grew over $ 1 Billion during that period over last year, according to Edahn Golan, a diamond and jewelry industry analyst based in Israel. Engagement rings led the charge.
Fashion E-tailer Moda Operandi reported a 35% sales increase during the first two months of the pandemic vs the same period in 2019. Their reasoning suggested that clients in lockdown are reallocating their budgets from ready-to-wear styles to fine jewelry, sentimental shoppers seeking out talismans and personalized jewels “to mark the occasion,” and women in search of the feel-good experience of buying pieces for themselves.
If the traditional holiday season is any measure for jewelers, then this should resonate and give some guidance for the future. Mastercard reported that 2020 holiday online jewelry sales were up 44.6 percent from 2019.
Online giant ebay’s gross merchandise volume for the 4th quarter of 2020 rose 21% to $26.6 billion. The company launched an authenticity guarantee for luxury watches and said it saw a double-digit gross-merchandise volume increase from the third to the fourth quarter.
The jewelry industry has lasted for generations, through famine and feast, and for thousands of years, has stood the test of time…it will survive!