Diamonds Can Gain from Travel Industry Woes

RAPAPORT... Discretionary spending on jewelry could increase as US consumers reallocate funds they would have used on travel, dining and other experiences prior to Covid-19, according to a De Beers report."As some consumers find themselves with additional discretionary income as a result of spend in other areas such as travel being canceled, there is potential they will allocate this to alternative purchases, creating something of a unique opportunity for diamonds," De Beers CEO Bruce Cleaver said Wednesday. "As a product that can be both experiential and meaningful, diamonds fill the temporary void left by travel in the way few other luxury products can."Some 44% of those surveyed stated they had more disposable cash than in previous years. One in eight of the consumers who had extra funds as a result of canceling travel plans said they would purchase a diamond instead to mark a special occasion.Consumer confidence has also improved since March, with nearly half of respondents stating they had an optimistic outlook on life overall for the next three months, and more than 60% noting the pandemic had not affected their personal finances. Meanwhile, 46% of those polled said their jewelry spending had returned to normal, while a further 25% expected it to return to previous levels within the next six months. De Beers surveyed 500 Americans over 18 for its third Diamond Insight "Flash" Report. Image: A woman wearing a diamond ring. (Pikrepo)