The World Gold Council has just published its Gold Demand Trends report, stating that, “Global gold consumption for 2010 will be higher than 2009 as a result of increasing levels of demand in India and China, sustained global demand for gold investment, together with growth in jewellery and industrial demand”.
According to the report for Q3 2010, published today, demand for gold in the final quarter of 2010 will be driven by the following factors:
- Increasing demand by the world's two largest markets, India and China,
as rising income levels, high savings rates and strong economic growth
continue to push up consumption.
- Gold jewellery demand is likely to exceed that of 2009 due to an
anticipated recovery in India, the most significant gold jewellery
market, and continuing strength in China.
- Concern over fiscal imbalances and currency tensions will continue to
support investment demand for gold.
- Industrial demand, which has returned to long-term levels, is expected
to remain firm on the back of renewed growth in the electronics
industry, due to the majority of semi-conductors being wired by gold.
So, what does all this mean for the independent jeweller? As stories have abounded over the past year of jewellers being caught out with the astronomic rise in gold prices – customers placing orders for gold items, only for the cost of the order to exceed the customer quotation in the few days that it takes for the order to be delivered - many jewellers have given up displaying prices for gold items and some are quoting ‘estimated prices’ to ensure that the don’t lose out.
Some jewellery designers have noticed that the demand for their gold pieces has waned as the price tag has risen, some are doing just as well as they ever did; especially if they are able to sell their jewellery as ‘investment’ pieces, and some have found that they simply can’t afford to work in the medium any longer.
How ever the rise in gold prices has effected your business, don’t expect it to end anytime soon.
JC
