Tuesday, 17 October, 2017
Home // News // Economy // Jewellery demand falls in Q3 as gold prices remain ‘persistently high’

Jewellery demand falls in Q3 as gold prices remain ‘persistently high’

Gold jewellery demand in the third quarter (Q3) of 2016 fell 21% on the same period last year to 492 tonnes (t), according to latest figures from the World Gold Council (WGC).

This was the largest decline since the second quarter of 2014 and the lowest third quarter for jewellery demand since 2011. It comes at a time when average gold prices were some 28% higher than recent levels.

Jewellery demand for the year to date is 18% down on the same period in 2015, from 1,732.7t last year to 1,423.6t – the lowest Q1 to Q3 total since 2009.

High prices were the key reason for continued weakness in the jewellery sector, and, barring just three or four “very minor” exceptions, jewellery demand fell in every consumer market that the WGC tracks.

Looking ahead to the fourth quarter, the WGC said, having started on a stronger footing, there should be a recovery in the jewellery sector and a October drop in the price of gold was “fortuitously timed”.

The approach of key buying occasions, such as the festival and wedding season in India; the main holiday season in Western markets; and the Chinese New Year is expected to make consumers in these markets more alert to lower prices.

However the WGC said it does not expect a “clear revival”, with the consumer environment in European markets remaining “hesitant”.

About Tom Davis

Tom Davis
A graduate from Staffordshire University with a degree in Journalism and Media Studies, Tom is currently living his magazine-writing dream. In his spare time, Tom enjoys photography and is a keen cyclist. Please do drop him an email for any potential new story ideas.

Check Also

Silver brings hallmarking up for August

The number of silver articles hallmarked in the month of August brought overall figures into …

Why not sign up to the Jewellery Focus Daily Briefing?

Why not sign up to the Jewellery Focus Daily Briefing?

Join our mailing list to let Jewellery Focus deliver the latest news from across the UK jewellery industry, directly to your inbox.

We have added you to our list! Please check your inbox to confirm your subscription.