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(Wallace Refiners) – 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.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Wallace Precious Metals The author has made every effort to ensure accuracy of information provided; however, neither Wallace Precious Metals nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Wallace Precious Metals and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.