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Gold Jewelry Demand -7% to $22B in 3Q
Nov 13, 2014 2:28 AM
By Ronen Shnidman
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RAPAPORT... Global gold jewelry demand declined 7 percent year on year to $22.02 billion during the third quarter, according to the World Gold Council (WGC). By volume, gold jewelry demand declined 4 percent to 534.2 tonnes.
The WGC explained that the decline in jewelry demand was largely due to a high-base effect after lower prices led to a surge of consumer purchases in the Far East last year.
Overall gold demand, including jewelry, investment products, technology and central banks, dropped 6 percent to $38.3 billion. By volume, total gold demand fell 2 percent to 929.3 tonnes
Despite softer gold jewelry demand, this year’s third quarter was slightly stronger than the five-year quarterly average, according to the WGC. Demand for gold jewelry in China and Hong Kong returned to levels similar to those of 2012. The overall figure was shored up by very strong demand in India ahead of the Diwali holiday. In western markets, the U.S. and U.K. also reported improving jewelry demand as the economic recovery gains momentum and lower gold prices enable retailers to entice price-sensitive consumers without hurting their margins.
In India, gold jewelry demand surged 54 percent to $7.54 billion, making the country the world’s largest gold market for the quarter. The traditional seasonal rise in the flow of gold to India for Diwali and the wedding season was magnified by positive sentiment in the economy and lower rupee-denominated gold prices in the local market.
In China, consumers adopted a restrained approach to gold jewelry purchases following a surge of buying activity in 2013. The value of gold jewelry demand in the country fell 41 percent to $6.06 billion during the quarter.
Gold jewelry demand across the Middle East declined 16 percent to $1.48 billion amid political instability in the region. U.S. gold jewelry demand increased 1 percent to $1.42 billion.
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Tags:
Dhanteras, Diwali gold sales, gold, gold rush, Ronen Shnidman, World Gold Council
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