Monday, 21st March 2005 (4132 views)

A rise in the number of affluent Americans is helping to drive a strong luxury goods market, with precious metals such as gold benefiting thanks to its exclusive appeal.

New analysis from the US suggests that an increasing number of consumers are purchasing luxury items, with the net wealth of households in the country currently at record levels.

Products such as gold mobile phones and mp3 players have signalled a new era in consumer shopping, which experts say has helped counteract the damaging impact of the dip in consumer confidence in the US after September 11th.

Lynn Franco, director of the Conference Board research centre, told Reuters that the "mass affluent" - consumers who are willing to treat themselves to quite substantial extravagances - had helped bolster the jewellery and other luxury goods market.

"Luxury is no longer confined to the affluent," she explained.

However, Ms Franco also warned that "if the economy goes downhill, those at the lower end of the luxury scale might be more impacted".

A recent report found that American consumers spent $57.4 billion on watch and jewellery purchases last year.

 

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