Gold jewelry demand declines 21 percent in 1Q

Fashion

Save

E-mail

Gold jewelry demand declines 21 percent in 1Q

May 21, 2008

Similar Stories | Topics

STORIES

Wobbly market drives record Q3 gold demand

'May is Gold Month' for fifth year running

U.S. gold jewelry demand decreases in 2007

U.S. gold-jewelry sales increase 6 percent

Van Cleef sees gold shine through economic clouds

TOPICS

New York—Gold jewelry demand declined 21 percent in the first quarter of 2008 as compared to the same period in 2007, marking the lowest quarterly level on record since 1993, according to the World Gold Council's gold demand trends report for the first quarter of 2008.

The sharp rise in gold prices—which reached levels above $1,000 per ounce in mid March—and unusually high volatility were key determinants in gold demand movements for the first quarter.

Total identifiable demand decreased by 16 percent in tonnage terms from year-earlier levels to 701.3 tonnes, the lowest in five years. However, total identifiable demand actually increased 20 percent in value terms to $20.9 billion, more than double the level of four years earlier.

The market most severely affected by movements in the gold price was India, where consumer demand decreased by 50 percent to 102.1 tonnes. Jewelry demand, at 71.1 tonnes, was half the level of demand in the first quarter of 2007.

Gold jewelry demand in Asia also declined in Japan (-4 percent), Vietnam (-19 percent) and Indonesia (-27 percent).

In contrast, total gold demand in China increased by 15 percent to 101.7 tonnes, with jewelry demand rising 9 percent to 86.6 tonnes. According to the report, continued economic strength allowed Chinese consumers to increase their purchases regardless of the rising gold price.

In the United States, demand declined again as the economic slowdown continued to weigh on manufacturers' and consumers' pockets. Overall demand declined 15 percent to 48.3 tonnes, a fall that the report said was fully attributable to a 25 percent decline in jewelry demand that more than outweighed a 91 percent rise in investment offtake.

Gold jewelry demand also declined in Italy (-13 percent) and the United Kingdom (-25 percent), while economic prosperity in Russia spurred consumers there to increase their spending (9 percent).

Demand declined in almost all the countries across the Middle East, most notably in Saudia Arabia (-25 percent), the United Arab Emirates (-19 percent) and the other Gulf countries (-30 percent). Egypt, however, was an exception, where demand increased 15 percent to 18 tonnes.

Jewelry demand for the second quarter of 2008 is likely to remain muted, according to the report, especially in the United States and Western Europe. However, buying opportunities such as the Indian Akshaya Tritiya festival—in which purchasing items considered to be long-term assets, including gold, is part of the tradition—coupled with the Indian and Middle Eastern wedding seasons, are expected to generate additional gold purchasing.

The World Gold Council's gold demand trends report for the first quarter of 2008 is based upon supply and demand data compiled by GFMS Ltd., a London-based precious metals and research consultancy.

Save

E-mail

More Fashion

Lori Bonn Design hires new execs

Oakland, Calif.--Lori Bonn Design has announced the addition of two new executives to its growing operation, with the company saying the move will enable Lori Bonn Design to fully capitalize on the considerable expansion it expects to undertake in the next year and beyond. Read More

Trent West, Penney's settle tungsten carbide suit

Singer snags six pieces at Madoff auction

More Fashion News

More Like This

Wobbly market drives record Q3 gold demand

November 24, 2008 | National Jeweler Network

'May is Gold Month' for fifth year running

March 12, 2008 | National Jeweler Network

U.S. gold jewelry demand decreases in 2007

February 13, 2008 | National Jeweler Network

U.S. gold-jewelry sales increase 6 percent

March 09, 2007 | National Jeweler Network

Van Cleef sees gold shine through economic clouds

January 25, 2008 | National Jeweler Network

TOPICS

Design Portfolio

BROWSE

Video

Retailer Toolbar

America's Best Jewelers
Join the ONLY Social Network for Jewelry Retailers. Get access to expert content, peer best practices, and more.
Start networking today.

Newsletters
Topic-specific newsletters that deliver the latest news on jewelry, diamonds, wholesale operations and high-volume buying directly to your in-box.

ReaderConnect
Supplier information presented with every article, bringing you related, actionable content on every topic.

Yellow Pages
A comprehensive listing of associations, organizations, suppliers and services for the jewelry industry.

Classifieds
A comprehensive listing of job postings, product offerings and other materials for sale for the jewelry industry.

CustomerConnect
The most sophisticated suite of marketing services available for jewelry retailers, from Internet tools to data marketing.