00:00Japan's luxury jewelry market is booming, and it's not just because people want to look good.
00:05Department store sales of gems, precious metals, and artwork reached a record of around $2 billion in the first half
00:12of this year.
00:13That's up 19% from a year ago, and the highest since records began in 2008.
00:19So why are people in Japan splurging?
00:22Simply put, to steal themselves from the weaker yen.
00:26Japan's yen in dollar terms has fallen to its lowest level in more than 30 years,
00:32while inflation continues to chip away at consumers' purchasing power.
00:37The U.S. and Japan have even worked together in a historic market intervention to try to support the yen's
00:43value.
00:44So instead of hauling cash, some shoppers are putting money into gold and branded jewelry that they believe will retain
00:51value.
00:51Some say customers are increasingly treating gold as part of their investment strategy.
00:57The trend is also changing luxury spending.
01:00Analysts say consumers are becoming more selective, buying fewer things overall, but spending more on products they expect to last.
01:08That's helping jewelry outperform other luxury goods like designer handbags.
01:13Global brands are benefiting too.
01:15Kautier owner Richman recently reported Japan as its fastest-growing market, driven by jewelry.
01:22So for many Japanese consumers, luxury isn't just about indulgence anymore.
01:28It's becoming a hedge against a weaker currency.
01:31?
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01:31?
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