The latest jewellery trade report from Retail Edge Consultants shows sales in March 2021 were 63 percent higher than the same month in 2020 and 37 percent higher than in 2019.

However, the report notes that the year-on-year increase should be contextualised with the COVID-19 pandemic; Australian Prime Minister Scott Morrison declared COVID-19 a national pandemic on 27 February 2020, with the first lockdowns coming into force in March, significantly impacting retail sales and consumer confidence.

"Within product category sales in dollar-terms, diamond-set precious metal jewellery almost doubled compared with March 2020 and increased 88 percent compared with 2019"

Still, the report notes that the two-year comparison – March 2021 to March 2019 – also shows an “exceptionally strong” increase in sales revenue.

The value of March jewellery retail sales significantly exceeded the previous two years.

Comparative sales in unit numbers for the same time period shows a modest increase of 4.5 percent, while the average sale price lifted 35 percent over two years – something the report attributed to “consumer demand”.

Some analysts note that increases in the gold price since 2019 are also likely to have played a role; on 19 April 2019, gold was trading as low as $US1,271.90 per ounce, and on 19 April 2021 it was trading at $US1,769.30 per ounce, down from the August 2020 high of more than $US2,000 per ounce. 

Within product category sales in dollar-terms, diamond-set precious metal jewellery almost doubled compared with March 2020 and increased 88 percent compared with 2019; this category was least impacted by COVID-19.

Meanwhile, none-stone set precious metal jewellery increased by 110 percent year-on-year, though it showed the largest sales contraction during March 2020. 

“Even allowing for the circumstances in March 2020, these numbers are exceptional,” the report observed.

The number of jewellery retail sales also showed continued promising results in March, driven by diamond-set jewellery and none-stone set jewellery.