Fine jewelers are seeing an upsurge in engagement ring sales as the economy rebounds from the COVID-19 pandemic.
In April and May, jewelers witnessed dramatic growth in engagement ring demand following the increase in Covid vaccination rates across the U.S.
Los Angeles-based fine jeweler, Mark Broumand Inc. has seen sales rebound after plummeting 40 per cent during the pandemic and June sales for this year are now 20 per cent higher than they were in the same month in 2019.
‘Love is what has really propelled everything’ during the pandemic, founder and president Mark Broumand said
In April and May, jewelers witnessed dramatic growth in engagement ring demand following the increase in Covid vaccination rates across the U.S
While true love might prove to be the primary culprit, another reason lies within the reality that many Americans were able to save a large amount of money due to the shutdown.
According CNN Business, many Americans cut back on expenses and increased savings once the pandemic hit, with many paying off debt, or donating more to help those in need.
In addition, travel shutdown and restaurant closures left many Americans cutting back on flights and dining out, ultimately leaving them with more disposable income.
‘Between the forced spending curtailment during pandemic lockdown and multiple rounds of stimulus checks, many households are sitting on more savings now than they’ve ever had before,’ said Greg McBride, chief financial analyst at Bankrate.com.
‘As the economy reopens, ‘revenge spending’ means a good chunk of this money will make its way into the economy,’ he added.
Almost half of couples planning to get married in last year postponed their wedding, with many setting a new date for this year, The Knot reported.
Sales at The Clear Cut, a New York-based engagement ring company, also skyrocketed this spring as couples can ‘finally travel’ and pop the question while on vacation, explained co-founder and chief operating officer Kyle Simon.
Privately held jeweler Shane Company said sales of wedding bands are also on the rise as in-person ceremonies are finally taking place after being postponed for so long.
‘We’ve seen a resurgence in both engagement ring and wedding band sales as couples start returning to normal life,’ Price Blanchard, chief customer officer and executive vice president at Shane Company., told CNN Business.
The Clear Cut, a New York-based engagement ring company, skyrocketed this spring, as did sales for Los Angeles-based fine jeweler, Mark Broumand Inc. Pictured in this photo, founder and president of Mark Broumand shakes hands with a client.
While couples may be opting for smaller weddings, they have ‘more disposable funds to be used toward the rings or jewelry to wear day-of,’ Stephanie Gottlieb, founder and jeweler at Stephanie Gottlieb Fine Jewelry in New York, told CNN Business.
Demand for diamonds is also on the rise, as Covid-19 restrictions led to global diamond shortages during the pandemic.
‘I had a hard time gearing up the production to sustain the demand,’ said Katarzyna Zygnerska Rosales, founder and designer of Kasia Jewelry in Solana Beach, CA.
Most jewelry companies work with the Gemological Institute of America, a nonprofit based in California dedicated to knowledge, standards, and education in gems and jewelry.
Inflation in the U.S. rose at a faster rate in May than any time since the Great Recession, data showed
Republicans blame President Joe Biden’s free spending policies, including his record proposal for a $6 trillion federal budget
Established in 1931, GIA is the world’s foremost authority on diamonds, colored stones, and pearls
‘We are experiencing historically high submissions for laboratory services,’ Tom Moses, GIA’s executive vice president and chief laboratory and research officer, told CNN Business.
In addition, the U.S. government said that overall consumer prices rose 0.6 percent in May, bringing the annual inflation rate to 5 percent, the highest level since August 2008.
Core inflation, which excludes volatile energy and food costs, rose 0.7 percent in May after an even bigger jump in April, and is up 3.8 over the past 12 months, the quickest rate since 1992.
In a recent report, Deutsche Bank wrote: ‘Rising prices will touch everyone. The effects could be devastating, particularly for the most vulnerable in society.’
Republicans blame the sharp rise in inflation on lax monetary policy and freewheeling stimulus spending by the Biden administration, which has proposed a record $6 trillion federal budget for the next fiscal year.