At first it seemed unlikely the industry would fully return. Trade shows in Hong Kong, Basel, and Las Vegas were cancelled, other events moved online, or postponed indefinitely. The vast majority of stores and retailers were shuttered by April. The impacts of the COVID-19 pandemic put the industry on hold. While many may question the resilience of the jewelry industry through this pandemic, recent growth in consumer spending on luxury goods, such as diamonds, has demonstrated that jewelry’s timeless nature has continued to appeal to consumers even in such uncertain times.
De Beers recently released a report following a survey that 60% of men intend to purchase diamond jewelry for a loved one this holiday season. According to the Boston Consulting Group, high-end travel is predicted to drop significantly this year. While the travel industry has suffered, people are electing to forego previously planned trips or opt for “stay-cations,” instead many are now interested in purchasing fine jewelry to supplement lost travel. Diamonds remain popular around the globe despite these slowdowns witnessed in other retail sectors because of their enduring value and timelessness.
The key benefits of acquiring diamond jewelry during times of economic uncertainty, like we are facing now, are that diamonds are a lifelong treasure, provide a meaningful way to express devotion, and are a solid investment. Like gold, natural diamonds are a stable and useful long-term possession that has helped shield against instability across decades. Common with other physical commodities, diamonds are virtually inflation proof and unlike gold take up a small physical space for what they can be worth.
The pandemic has not ended, but slowly we are observing upward trends in diamond purchasing. Natural diamonds, unlike lab grown diamonds — which retain little to no value, remain an important asset of diversification and beauty. Grunberger Diamonds continues to provide stones that are ethically sourced, all natural, and retain exceptional value with an incredible cut.