Worldwide jewellery fabrication falls due to losses in key markets

by eyetee | February 2, 2009 12:00 am

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Gold jewellery fabrication fell 11 per cent in 2008, fuelled mainly by a 69 per cent decline in India, Italy, Turkey, and the United States, says a precious metals consultancy.

According to GFMS, record and volatile prices, as well as the global economic downturn, were the key reasons for the decrease, representing a drop of 262 tonnes and taking jewellery fabrication to its lowest level since 1989.

In its Gold Survey 2008—Update 2, the consultancy said it expects the price of gold to reach an all-time high in the first half of 2009, pushed higher by investor demand. It also estimates the price of gold would have likely already topped its previous record-breaking price of $1011.25 per ounce had it not been for heavy fund redemptions to cover losses or meet margin calls.

“If it hadn’t been for this fund selling, we’d be easily back over $1,000 by now and, as soon as it quiets down, I’m sure a strong rally is going to emerge,” said GFMS executive chair Philip Klapwijk.

India accounted for the greatest decline, due to high and volatile prices, while a sharp drop in jewellery consumption in the United States was the reason behind an 18 per cent decrease in the export of Italian jewellery. In contrast, China saw growth for the sixth consecutive year.

There was some relief in last year’s third quarter when gold prices fell slightly, yielding a 30 per cent increase in jewellery fabrication over the previous three months.

Source URL: https://www.jewellerybusiness.com/news/worldwide-jewellery-fabrication-falls-due-to-losses-in-key-markets/

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