Following the pattern seen in Japan's clothing and accessories industries, in which ultra-expensive designer bags by Louis Vuitton are snatched up with as much vigor as cheap clothing from Uniqlo stores, the "middle market" is rapidly disappearing from the nation's gemstone and jewelry industry.
Despite the protracted economic downturn, business is still bustling in the high and low ends -- at least for businesses that have found a niche and didn't get too accustomed to the bubble-economy years of asset inflation.
"Over the last two or three years, business has been getting better," said Iwao Tezuka, who crafts handmade "graniation" jewelry, made with dozens, sometimes thousands, of tiny spheres of precious metals. His pieces range in price from 100,000 yen to 1 million yen, wholesale.