Despite the economic downturn, sales of jewelry for special occasions such as wedding, engagement and anniversaries has remained relatively stable or in some cases even increased.
Suresh Hathiramani, the vice-president of the Singapore Diamond Exchange told the Malaysian Insider that “Relationships matter even more now. More people are tying the knot. The last six to eight months has seen a boom in the wedding industry,” . He also noted that regardless of the economic situation there will be a market for such jewelry, local jewelers should focus on manufacturing and marketing this type of jewelry.
The ongoing recession has also indirectly added value to traditional jewelry which has been passed down from generation to generation. In fact this year’s Singapore International Jewellery Show at the Suntec convention centre had a special showcase for traditional jewelry in the VIP lounge area.
During a recession it might actually make more sense to invest in gemstones and diamonds compared to the Stock Market because the fall in value of gemstones and diamonds are only 10% and 25% respectively. This is much less than the fall in the equity markets. This is also reflected in the World Wealth Report 2009 which indicates that high net worth individuals in Asia are investing up to 22% of their wealth on watches, gemstones, diamonds and jewelry.