• November 17, 2008

DeBeers thinks diamonds are always a good idea--even in a recession. Reuters is reporting that the diamond company plans to double its U.S. ad spending heading into the winter holidays.

"I believe consumers will disproportionately buy diamonds this year and we will, even in a smaller market, take a bigger market share," its chief told the news agency. "Obviously, it will be down on last year, but I think that in terms of what people are expecting to sell it will be better." The U.S. buys about 45% of the world's diamonds, with about 40% of those sales occurring around Christmas. The new ad campaign features such slogans as "fewer better things," "here today, here tomorrow" and "here's to less," which speak to the staying power of diamond gifts.

While DeBeers may have high hopes, other jewelers are worried: Women's Wear Daily reports that such companies as Compagnie Financière Richemont SA--parent of mainstays such as Cartier and Van Cleef & Arpels--and Bulgari SpA are seeing a falloff.--Sarah Mahoney