RE: RE: RE: RE: C'MON ALL YOU RAH RAH BOYS
Gold may be losing its shine with investors, but the price drop has led to a spike in gold jewellery sales, which hit a record in the first quarter, according to the World Gold Council’s latest global demand trends report.
Jewellery demand was driven by countries such as China and India, but there was also a surprise showing from the United States, where buying increased for the first time since 2005.
There was a “widespread resurgence” of jewellery buying, the report says. Gold jewellery demand reached a record high value of US$28.9 billion in the first quarter, up 12 per cent from the same quarter last year.
“Consumers across the globe made their presence felt,” says the report.
If you weren’t one of the lucky ones get a gold watch or necklace in the first three months of the year, you weren’t part of the buying blitz. That said, there’s always the second quarter, which is expected to be equally brisk for buying, given the correction between higher jewellery sales and lower gold prices. The price of gold is experiencing its worst slump since March 2009, with prices at around US$1,369 on Friday.
China saw the biggest rise in gold jewellery, reaching a new quarter record, due largely to February’s Chinese New Year celebrations, which is a traditional gold gift-giving period.
India and China, which account for 62 per cent of global jewellery demand, generated year-over-year growth of 15 and 19 per cent, respectively.
The big story was really in the U.S., where gold jewellery purchases rose by 6 per cent, marking the country's first year-over-year increase in jewellery buying since the third quarter of 2005.
The numbers reflect and increase in American consumer confidence and a slow but steady recovery in the housing market.
“As economic sentiment improves... gold demand appears to be following suit,” the report states.
It also said discount retailers in the U.S. have started to reintroduce gold pieces “in recognition of solid underlying demand.”
More U.S. consumers are also starting to see gold jewellery as a “quasi-investment,” or “heirloom” pieces that can be given as gifts and passed on through generations, the report says