Bain & Co. Forecasts a 12% Drop in Jewelry Sales in 2009

Sales of luxury goods are expected to decline by 10 percent this year, falling to $201 billion worldwide a recently publicized report from Bain & Co. forecasts. In October, the firm predicted a 7 percent decline.

The Bain report forecasts depressed sales in the first half of the year, dropping 20 percent compared to 2008, before sales recover in the second half of 2009.

Jewelry and watch sales are forecast to fall by 12 percent globally.

The U.S., which accounts for about half of global diamond jewelry sales and a third of luxury-goods sales, will be especially hard hit. Bain expects U.S. luxury sales will drop by 15 percent this year compared to an expected sales decline of about 10 percent in both Europe and Japan.

A slight glimmer of home comes from China and the Middle East. Sales in those areas are predicted to rise 7 percent and 2 percent respectively.