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Ramat Gan, Israel—For the second year in a row, U.S. consumer spending on jewelry rose more than 9% in 2020, even as overall spending declined slightly during the year.

Diamond industry analyst Edahn Golan’s latest Insight Report shows that while consumers saved more of their money last year, they still clearly felt that jewelry was an important purchase.

“Once again, we see that when people feel that life is in peril – when they feel under a threat, be it economic, due to a natural disaster, or even security related, they turn to jewelry. Not exclusively, yet very consistently,” he says in the report.

Demographically, Golan says the biggest jewelry spenders last year were mainly White, age 45-54, with a pre-tax income of $200,000 or more, living in the largest US cities, highly educated, and employed as managers and professionals—matching the profile of people least affected economically by the pandemic. This income bracket has always spent the most on jewelry, says Golan. In 2020, they averaged $2,255, nearly 7% more than in 2019, and the gap between this group and others is only growing. 

But the lowest-income consumers (< $15,000) also spent more on jewelry last year. Golan hypothesizes this group may have significant unreported income, often in cash. Average jewelry expenditure for this demographic was $204, he says. (Editor’s note: it’s also possible this demographic could include young people living at home, freeing up their income for discretionary purchases.)

Ultimately, says Golan, consumer spending will shift to other categories when the pandemic recedes, or inflation may impact disposable income. But the figures underscore the importance of jewelry to our lives, and Golan advises that jewelry or diamond marketing campaigns focus on that role.

Diamond and jewelry analyst Edahn Golan

Read Golan’s full Insight Report here.