(Kitco News) – Valentine’s Day is quickly approaching, and historically it has been an important holiday for the jewelry market. However, this year the COID-19 pandemic is expected to take a bite out of sales.
The latest consumer data from National Retail Federation shows that 18% of U.S. consumers surveyed are expected to buy jewelry this year, down from 21% reported in 2020, before the global economy was devastated by the coronavirus.
In total, spending is expected to be at $21.8 billion, according to the annual survey, down from $27.4 billion spent last year.
“There is no question the pandemic has disrupted many aspects of Americans’ daily interactions and activities,” said NRF President and CEO Matthew Shay. “However, there remains a special significance around Valentine’s Day, and consumers are committed to celebrating friends and loved ones, even if that means having to alter those traditional holiday celebrations.”
Despite this drop, it is still the second-highest Valentine’s Day in terms of expected spending and comes on the heels of a record-setting winter holiday season.
While investment demand has been the driving force for gold prices in 2020, the jewelry sector remains an important pillar of the gold market.
In a report published last week, precious metal analysts with CRU Group said that 1,434 tonnes of gold, representing 46% of total production last year, was used in the jewelry sector.