India leads the pack in demand for gold used for jewellery fabrication, but China is quickly catching up and overtaking Turkey and Italy for second place.According to the “Gold Survey 2008″ published by U.K.-based precious metals consultancy firm GFMS, global demand for gold increased by more than five per cent last year, although most of it occurred in the first half with a 22 per cent gain over the same period in 2006. By June 2007, demand had dropped by nine per cent with most of the decline happening in the last quarter.
Global jewellery fabrication increased by more than 10 per cent last year (not including scrap), due mainly to a 40 per cent rise in new jewellery demand in the Middle East. India also recorded a small increase of eight per cent, although this number masks a 70 per cent growth in the first half of 2007 and a 40 per cent decline in the second.
Italy saw a drop in jewellery demand, which is partly due to a weakness in U.S. exports. The picture in the United States was no rosier as retail sales fell by 15 per cent due to a weak economy and the high price of gold.
