Out of glitter

Flashiness is out and subdued celebration is in among wealthy Americans on Valentine's Day. As the economic crisis spreads and conspicuous consumption loses its luster, hedge fund millionaires and oil barons are shunning eye-catching items like yellow, red and blue diamonds in favour of lower-key gifts.

Anecdotally, those with investment portfolios worth more than $10 million are shunning flamboyant gifts that could be seen as out of step with the somber economic mood. "You have a level of social opprobrium," said Richard Baker, chief of luxury marketing researcher Premium Knowledge, adding the super-wealthy were anxious about "being labelled as ostentatious" and were "pulling back substantially." In recent years, he said, Valentine's Day spending among the $10-million-plus crowd rose by 8-10% a year. Common were gifts costing tens of thousands of dollars, Baker said, such as yellow diamonds and luxury time pieces from companies like Cartier, whose corporate parent Richemont posted a 12% drop in sales in the fourth quarter of 2008.

In the hedge fund epicentre of Greenwich, Connecticut, buyers are looking at traditional white diamonds, said John Green, chief of jewellery store chain Lux Bond and Green." In the historical downtown of Charleston, South Carolina, the mood looks less exuberant, said a local florist. "It's a combination of the economy and the mind-set of the American public," said Manny Gonzales, owner of Tiger Lily Florist. "Who is going to still pay $110 for roses?" he asked about Valentine's Day. "We are offering lower-priced, high-quality arrangements including tulips, hyacinths etc, which I think will be more popular this year than ever."

In Hollywood, flamboyant spending in expensive restaurants began slowing with the screen writer's strike in late 2007, said a public relations specialist for eateries such as Patina Restaurant and Citrus at Social. Valentine's Day reservations at high-end restaurants are down about 25% from last year, she said. Home-style comfort food such as burgers and macaroni and cheese are more in vogue than refined Italian food and haute French cuisine. Chuck Hunt, vice president of the New York State Restaurant Association, said habits are however, not likely to change for patrons of very high-end spots with checks in the hundreds of dollars per person."Even if they lost half their fortune..." he said, "they probably are not going to change their dining regimen."