5% Increase in Q3 Gold Jewelry Demand

Gold jewelry demand for the third quarter of 2013 increased 5 percent year-over-year to 486.7 tons, the World Gold Council said Thursday, marking the best third quarter performance for the precious metal since 2010. 

In terms of value, gold being used for jewelry for the period fell by 15 percent year-over-year, due to a drop in the trading price of the precious metal, according to the WGC’s Gold Demand Trends report for the third quarter of 2013. Demand for the period was worth $20.8 billion, the lowest quarterly value since the third quarter of 2010.

Global growth for the period was led by high-karat gold jewelry purchases in Asia, the Middle East and the US, 

“An almost universal phenomenon in the third quarter was the increasing popularity of higher carat jewelry,” the WGC said in its report. “Across Asia, the Middle East and in the US, higher carat jewelry was noted as an area of particular growth as the increased investment properties associated with gold of higher purity came to the fore. The fact that jewelry retailers in a number of markets were increasingly stocking investment products (small bars and coins) provided further evidence of the greater blurring of the jewelry/investment distinction.”

Consumers in China generated 163.7 tons of jewelry demand in the third quarter, making it by far the largest single jewelry market. The country’s year-to-date, demand of 518 tons already equals the same amount for the full-year 2012.

“To some extent, exhaustion set in towards the end of Q3 after such a frenetic second quarter, but continued expansion of the retail network confirms that the trade sees prospects for growth,” the WGC said.

Increases were reported in 24k jewelry (known as “chuk kam”), which has a purity rating of 95.95 percent and in “four nines” gold (gold jewelry of 99.99% purity, compared with the typical 24-carat purity of 99.95%). The WGC explained that the former is unique to China and is most popular with consumers in lower tier markets and rural areas as an investment hedge.

Mainland Chinese consumers also attributed to a 28 percent increase in gold jewelry consumption in Hong Kong to 7.5 tons.

In the US, the WGC noted that “demand was a key development.” Gold jewelry demand for the third quarter rose 14 percent year-over-year to 43.4 million tons.

With the exception of fourth quarter demand (driven by holiday sales), the third quarter was the first quarter in four years in which gross jewelry demand exceeded recycling—creating net positive jewelry demand,” the WGC said. “Since Q3 2009, gross new quarterly jewelry demand had been exceeded by the recycling of old gold jewelry as distress selling took off during the economic downturn,” WGC said. “Increasingly positive sentiment among US consumers during the third quarter reversed this trend.”

The report also notes a shift towards 18k jewelry from 14k.

“Given recent developments in the US, consumer sentiment has taken a hit early in the fourth quarter, but the seasonal impact, together with prices holding below US$1,400/oz, suggests a certain amount of resilience,” the WGC said.

India, one of the world’s largest markets for gold jewelry, saw demand drop by 23 percent year-over-year to 104.7 tons due to import restrictions imposed by the government. “Demand for gold jewelry among Indian consumers remains strong, but reduced supply has prevented this demand from being fully realized,” the WGC said.

"The smaller Asian markets had robust growth for the period, with the exception of South Korea where weak consumer sentiment and a sluggish domestic economy dampened demand," the WGC said. "Across the rest of the region, there was a trend for higher karat jewelry pieces of relatively simple design as consumers across the region took advantage of gold’s increased affordability."

Gold jewelry demand in the Middle East increased 9 percent to 51.2 million tons, due to lower prices across the region, the WGC said. The “unsurprising” exception was Egypt.

“The emphasis on 22-karat gold at the expense of 21- and 18-carat diamond-set jewelry suggests demand was stronger among domestic consumers relative to western tourists.”

The third quarter in Turkey, which is traditionally strong, saw year-over-year demand increase 14 percent. In value terms, demand was virtually flat, due to a 12 percent decline in the local currency price of the precious metal.

Russia’s growing middle class, armed with greater disposable income, helped generate a 7 percent year-over-year growth in jewelry demand.

“European markets were again the exceptions to the more positive global picture, with both UK (-14%) and Italy (-7%) posting year-over-year declines due to “economic concerns,” WGC said.

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Website.

Gold jewelry demand for the third quarter of 2013 increased 5 percent year-over-year to 486.7 tons, the World Gold Council said Thursday, marking the best third quarter performance for the precious metal since 2010. 

In terms of value, gold being used for jewelry for the period fell by 15 percent year-over-year, due to a drop in the trading price of the precious metal, according to the WGC’s Gold Demand Trends report for the third quarter of 2013. Demand for the period was worth $20.8 billion, the lowest quarterly value since the third quarter of 2010.

Global growth for the period was led by high-karat gold jewelry purchases in Asia, the Middle East and the US, 

“An almost universal phenomenon in the third quarter was the increasing popularity of higher carat jewelry,” the WGC said in its report. “Across Asia, the Middle East and in the US, higher carat jewelry was noted as an area of particular growth as the increased investment properties associated with gold of higher purity came to the fore. The fact that jewelry retailers in a number of markets were increasingly stocking investment products (small bars and coins) provided further evidence of the greater blurring of the jewelry/investment distinction.”

Consumers in China generated 163.7 tons of jewelry demand in the third quarter, making it by far the largest single jewelry market. The country’s year-to-date, demand of 518 tons already equals the same amount for the full-year 2012.

“To some extent, exhaustion set in towards the end of Q3 after such a frenetic second quarter, but continued expansion of the retail network confirms that the trade sees prospects for growth,” the WGC said.

Increases were reported in 24k jewelry (known as “chuk kam”), which has a purity rating of 95.95 percent and in “four nines” gold (gold jewelry of 99.99% purity, compared with the typical 24-carat purity of 99.95%). The WGC explained that the former is unique to China and is most popular with consumers in lower tier markets and rural areas as an investment hedge.

Mainland Chinese consumers also attributed to a 28 percent increase in gold jewelry consumption in Hong Kong to 7.5 tons.

In the US, the WGC noted that “demand was a key development.” Gold jewelry demand for the third quarter rose 14 percent year-over-year to 43.4 million tons.

With the exception of fourth quarter demand (driven by holiday sales), the third quarter was the first quarter in four years in which gross jewelry demand exceeded recycling—creating net positive jewelry demand,” the WGC said. “Since Q3 2009, gross new quarterly jewelry demand had been exceeded by the recycling of old gold jewelry as distress selling took off during the economic downturn,” WGC said. “Increasingly positive sentiment among US consumers during the third quarter reversed this trend.”

The report also notes a shift towards 18k jewelry from 14k.

“Given recent developments in the US, consumer sentiment has taken a hit early in the fourth quarter, but the seasonal impact, together with prices holding below US$1,400/oz, suggests a certain amount of resilience,” the WGC said.

India, one of the world’s largest markets for gold jewelry, saw demand drop by 23 percent year-over-year to 104.7 tons due to import restrictions imposed by the government. “Demand for gold jewelry among Indian consumers remains strong, but reduced supply has prevented this demand from being fully realized,” the WGC said.

"The smaller Asian markets had robust growth for the period, with the exception of South Korea where weak consumer sentiment and a sluggish domestic economy dampened demand," the WGC said. "Across the rest of the region, there was a trend for higher karat jewelry pieces of relatively simple design as consumers across the region took advantage of gold’s increased affordability."

Gold jewelry demand in the Middle East increased 9 percent to 51.2 million tons, due to lower prices across the region, the WGC said. The “unsurprising” exception was Egypt.

“The emphasis on 22-karat gold at the expense of 21- and 18-carat diamond-set jewelry suggests demand was stronger among domestic consumers relative to western tourists.”

The third quarter in Turkey, which is traditionally strong, saw year-over-year demand increase 14 percent. In value terms, demand was virtually flat, due to a 12 percent decline in the local currency price of the precious metal.

Russia’s growing middle class, armed with greater disposable income, helped generate a 7 percent year-over-year growth in jewelry demand.

“European markets were again the exceptions to the more positive global picture, with both UK (-14%) and Italy (-7%) posting year-over-year declines due to “economic concerns,” WGC said.

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Website.

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Gold Jewelry Is Back as Global Demand Surges to 5-Year High

18k Picasso Gold brooch, Tiffany & Co.

Demand for gold jewelry in the second quarter surged to its highest level in five years due to a sharp drop in the price of the precious metal, the World Gold Council said Thursday.

Gold jewelry demand by volume increased 37 percent to 575.5 tons, according to the WGC’s Gold Demand Trend report for the second quarter of 2013. The demand for gold was so great that it far outweighed a decline in the average gold price as the demand in terms of value rose 20 percent to nearly $26.2 billion, the fourth highest on record.

The price of gold for the second quarter fell by more than $400 an ounce or 12 percent, according to the WGC, the marketing development organization for the gold industry.

“Although jewelry demand is influenced by a wide set of factors, including economic growth, consumer sentiment and disposable income, to name a few, all were eclipsed by the effect of the drop in the gold price,” the WGC said in its report.

The upward trend was “almost universal,” the WGC said, with the most notable year-over-year improvements in India, China, the Middle East and smaller Asian countries. Demand included an increase of higher-carat jewelry. Europe was the only region where jewelry demand failed to rise.

The US reported its second consecutive quarter of growth. Demand remained the healthiest at the higher end of the market, however, the WGC noted that the middle market is beginning to shift from lower- to higher-carat gold. The WGC also said the lower prices provided an opportunity for wholesalers to stock early for the Christmas holiday season.

India and China, again, generated the largest volume increase—almost 120 tons of the 155-ton increase in demand was from these two countries, according to the report. Hong Kong generated the strongest percentage growth in demand (approximately 65%), surging to a record 12.1 tons. In fact, double-digit growth was commonplace throughout the Asian markets, with the exception of Japan, which was unchanged. In Indonesia, demand of 7.8 tons was the strongest second quarter since Q2 2009.

In Turkey, a gold jewelry manufacturing center, demand hit a record high in terms of local currency value, led by consumer bargain hunting (concentrated in 22k market for investment) and trade inventory building. Growth across the Middle Eastern region was almost purely price-related, the WGC said.

The improvement in the US market was not replicated in the western European market, “where negative economic conditions overwhelmed the positive impact of lower prices,” the WGC said. In Italy, another major jewelry manufacturing center, demand fell by nearly 10 percent and in the UK demand dropped by more than 20 percent.

Jewelry demand in Russia “continued to normalize towards pre-crisis levels,” the report states, with demand concentrated on the high and low ends of the market.

The Gold Demand Trends report also tracks demand in gold for investment and technology purposes. In the second quarter, overall gold demand fell by 12 percent to 856.3 tons due to the drastic drop in the price of the precious metal. This translated to a 23 percent drop in value to $39 billion—its lowest level in more than five years.

“Record quarterly investment in gold bars and coins was countered by sizeable outflows from ETFs as western investors reacted to a seemingly more positive outlook for the US economy and an eventual tapering of quantitative easing,” the WGC said.

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Web site.

18k Picasso Gold brooch, Tiffany & Co.

Demand for gold jewelry in the second quarter surged to its highest level in five years due to a sharp drop in the price of the precious metal, the World Gold Council said Thursday.

Gold jewelry demand by volume increased 37 percent to 575.5 tons, according to the WGC’s Gold Demand Trend report for the second quarter of 2013. The demand for gold was so great that it far outweighed a decline in the average gold price as the demand in terms of value rose 20 percent to nearly $26.2 billion, the fourth highest on record.

The price of gold for the second quarter fell by more than $400 an ounce or 12 percent, according to the WGC, the marketing development organization for the gold industry.

“Although jewelry demand is influenced by a wide set of factors, including economic growth, consumer sentiment and disposable income, to name a few, all were eclipsed by the effect of the drop in the gold price,” the WGC said in its report.

The upward trend was “almost universal,” the WGC said, with the most notable year-over-year improvements in India, China, the Middle East and smaller Asian countries. Demand included an increase of higher-carat jewelry. Europe was the only region where jewelry demand failed to rise.

The US reported its second consecutive quarter of growth. Demand remained the healthiest at the higher end of the market, however, the WGC noted that the middle market is beginning to shift from lower- to higher-carat gold. The WGC also said the lower prices provided an opportunity for wholesalers to stock early for the Christmas holiday season.

India and China, again, generated the largest volume increase—almost 120 tons of the 155-ton increase in demand was from these two countries, according to the report. Hong Kong generated the strongest percentage growth in demand (approximately 65%), surging to a record 12.1 tons. In fact, double-digit growth was commonplace throughout the Asian markets, with the exception of Japan, which was unchanged. In Indonesia, demand of 7.8 tons was the strongest second quarter since Q2 2009.

In Turkey, a gold jewelry manufacturing center, demand hit a record high in terms of local currency value, led by consumer bargain hunting (concentrated in 22k market for investment) and trade inventory building. Growth across the Middle Eastern region was almost purely price-related, the WGC said.

The improvement in the US market was not replicated in the western European market, “where negative economic conditions overwhelmed the positive impact of lower prices,” the WGC said. In Italy, another major jewelry manufacturing center, demand fell by nearly 10 percent and in the UK demand dropped by more than 20 percent.

Jewelry demand in Russia “continued to normalize towards pre-crisis levels,” the report states, with demand concentrated on the high and low ends of the market.

The Gold Demand Trends report also tracks demand in gold for investment and technology purposes. In the second quarter, overall gold demand fell by 12 percent to 856.3 tons due to the drastic drop in the price of the precious metal. This translated to a 23 percent drop in value to $39 billion—its lowest level in more than five years.

“Record quarterly investment in gold bars and coins was countered by sizeable outflows from ETFs as western investors reacted to a seemingly more positive outlook for the US economy and an eventual tapering of quantitative easing,” the WGC said.

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Web site.

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Gold, Diamonds and Crystals Glitter, Sparkle, and Shine at Las Vegas Jewelry Week

The World Gold Council's LoveGold exhibit at Couture.

Not everything was for sale at the jewelry shows in Las Vegas this past week although I suppose someone could have purchased the 27-pound gold bar valued at more than $500,000 from the LoveGold Exhibit at the Couture jewelry show.

Gold jewelry from Couture Show jewelry exhibitors.

Up on a stage above the tradeshow exhibitors at Wynn Las Vegas, the World Gold Council’s exhibition included art creations, curated gold jewelry used at red carpet events and selected gold pieces from the vendors at the tradeshow. LoveGold is the fashion jewelry initiative of the WGC, the marketing development organization of the gold industry.

One of the gold fashion displays at the LoveGold exhibit.

Many of the pieces were from the catwalk at Cannes where they were part of a special fashion show that was curated by Carine Roitfeld, the former editor-in-chief of Vogue Paris, to benefit amfAR, the foundation for AIDS research.

“We want to showcase the best that gold can be regardless of origin or price point,” said Sally Morrison of the World Gold Council. “The exhibition at Couture was a way of introducing the beginning of this activity to the brands and press at the show.”

A display at the "Diamonds with a Story" Rio Tinto Diamonds exhibition that highlights diamond origins.

As previously noted, Rio Tinto Diamonds presented an exhibition at the JCK Luxury and JCK Las Vegas tradeshows titled “Diamonds with a Story.” It featured jewelry created for the US market by eight North American designers based on the following four topics: “Origin,” “Cutting Impact,” “Mixed Medium” and “Color My World.” The designers created their works using Rio Tinto's colored diamonds from its Argyle mine in Australia and white diamonds from its Diavik mine in Northwestern Canada.

Varieties of Rio Tinto diamonds.

The exhibit is part of a marketing program by the mining company for the jewelry trade based on its own consumer research. The jewelry collections based on the four stories identify consumers' desire for the following attributes:

• Identifying the place of origin of the diamond they buy;
• Knowing that their diamond purchase is having a positive impact;
• Differentiating designs and concepts; and
• Access to natural colored diamonds

“We are excited by how well the 'Diamonds with a Story' platform is resonating," said Rebecca Foerster, manager of Rio Tinto Diamonds US Representative Office. “This appetite for innovation is good news for miners, manufacturers, retailers and ultimately the consumer.”

Elaborate and colorful jewelry design by David Mandel, part of the Swarovski Elements exhibit at JCL Las Vegas.

Swarovski Elements, the premium brand division of the world-renowned crystal company, Swarovski, provided a fashion-forward jewelry exhibition at JCK Las Vegas called “World Jewelry Facets,” featuring collaborations with designers and artists representing several mediums who created colorful designs using Swarovski crystal.

A necklace by Tim Hosier and Brian Thorson.

The creations ranged from elaborate, fanciful designs to more wearable pieces. Designers included Tim Hosier and Brian Thorson, known for their home accessories designs, to entertainment industry designer David Mandel.

Jewelry by American artists at the Swarovski Elements exhibit

There is also a charitable element with designs created by Senhoa, a non-profit organization and fashion brand that produces jewelry made by survivors of human trafficking. The Senhoa line on display was designed by Canadian model, Coco Rocha, and handcrafted by survivors of exploitation in Cambodia.

Jewelry by the non-profit organization and fashion brand, Senhoa, handcrafted by survivors of exploitation in Cambodia,

 
Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Website.

The World Gold Council's LoveGold exhibit at Couture.

Not everything was for sale at the jewelry shows in Las Vegas this past week although I suppose someone could have purchased the 27-pound gold bar valued at more than $500,000 from the LoveGold Exhibit at the Couture jewelry show.

Gold jewelry from Couture Show jewelry exhibitors.

Up on a stage above the tradeshow exhibitors at Wynn Las Vegas, the World Gold Council’s exhibition included art creations, curated gold jewelry used at red carpet events and selected gold pieces from the vendors at the tradeshow. LoveGold is the fashion jewelry initiative of the WGC, the marketing development organization of the gold industry.

One of the gold fashion displays at the LoveGold exhibit.

Many of the pieces were from the catwalk at Cannes where they were part of a special fashion show that was curated by Carine Roitfeld, the former editor-in-chief of Vogue Paris, to benefit amfAR, the foundation for AIDS research.

“We want to showcase the best that gold can be regardless of origin or price point,” said Sally Morrison of the World Gold Council. “The exhibition at Couture was a way of introducing the beginning of this activity to the brands and press at the show.”

A display at the "Diamonds with a Story" Rio Tinto Diamonds exhibition that highlights diamond origins.

As previously noted, Rio Tinto Diamonds presented an exhibition at the JCK Luxury and JCK Las Vegas tradeshows titled “Diamonds with a Story.” It featured jewelry created for the US market by eight North American designers based on the following four topics: “Origin,” “Cutting Impact,” “Mixed Medium” and “Color My World.” The designers created their works using Rio Tinto's colored diamonds from its Argyle mine in Australia and white diamonds from its Diavik mine in Northwestern Canada.

Varieties of Rio Tinto diamonds.

The exhibit is part of a marketing program by the mining company for the jewelry trade based on its own consumer research. The jewelry collections based on the four stories identify consumers' desire for the following attributes:

• Identifying the place of origin of the diamond they buy;
• Knowing that their diamond purchase is having a positive impact;
• Differentiating designs and concepts; and
• Access to natural colored diamonds

“We are excited by how well the 'Diamonds with a Story' platform is resonating," said Rebecca Foerster, manager of Rio Tinto Diamonds US Representative Office. “This appetite for innovation is good news for miners, manufacturers, retailers and ultimately the consumer.”

Elaborate and colorful jewelry design by David Mandel, part of the Swarovski Elements exhibit at JCL Las Vegas.

Swarovski Elements, the premium brand division of the world-renowned crystal company, Swarovski, provided a fashion-forward jewelry exhibition at JCK Las Vegas called “World Jewelry Facets,” featuring collaborations with designers and artists representing several mediums who created colorful designs using Swarovski crystal.

A necklace by Tim Hosier and Brian Thorson.

The creations ranged from elaborate, fanciful designs to more wearable pieces. Designers included Tim Hosier and Brian Thorson, known for their home accessories designs, to entertainment industry designer David Mandel.

Jewelry by American artists at the Swarovski Elements exhibit

There is also a charitable element with designs created by Senhoa, a non-profit organization and fashion brand that produces jewelry made by survivors of human trafficking. The Senhoa line on display was designed by Canadian model, Coco Rocha, and handcrafted by survivors of exploitation in Cambodia.

Jewelry by the non-profit organization and fashion brand, Senhoa, handcrafted by survivors of exploitation in Cambodia,

 
Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Website.

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U.S. Sees First Increase in Gold Jewelry Demand in 7 Years

Gold jewelry making a comeback.

Gold jewelry demand in the U.S. for the first quarter of 2013 grew by more than 5% year-over-year to reach a value of $986 million. This is the first increase in demand since the third quarter of 2005, the World Gold Council said Thursday.

The lower-end of the U.S. jewelry market rebounded considerably, the WGC in its quarterly Gold Demand Trends report, adding that it’s “a further positive sign of recovery in the U.S. economy, coinciding with a correction in the gold price over the course of the quarter.”

Meanwhile, the amount of gold used for the fabrication of jewelry worldwide increased by 12% year-over-year to 551 metric tons for the first quarter of 2013, worth a record value of $28.9 billion, according to the report.

The dramatic decline in the value of gold has led to an increase in demand, the WGC said in the report. However, that demand is largely limited to India and China, who continue to distance themselves from the rest of the world in their passion for gold jewelry. The two countries combined now account for 62% of gold jewelry demand, according to the report. The U.S. for the first time in more seven years saw a year-over-year increase in gold jewelry demand.

Other highlights of the report include:

* Gold jewelry demand surged by 19% in China to a record level, led by Chinese New Year gifting in January and a rebound in consumer sentiment, WGC said. This is despite new in leadership in China calling for less conspicuous consumption. Demand saw the largest increase in 24k gold jewelry, although demand for 18k gold jewelry also increased.

* In India, year-over-year demand grew by 15% and came just short of beating the fourth quarter 2012 record. However, that gain was compared a very soft first quarter of 2012.

* Meanwhile, gold jewelry demand in Italy and the U.K. fell dramatically, 12% and 7%, respectively, as difficult economic continues continue to lead consumers to purchase lower-karat gold and silver jewelry.

 Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Website.

Gold jewelry making a comeback.

Gold jewelry demand in the U.S. for the first quarter of 2013 grew by more than 5% year-over-year to reach a value of $986 million. This is the first increase in demand since the third quarter of 2005, the World Gold Council said Thursday.

The lower-end of the U.S. jewelry market rebounded considerably, the WGC in its quarterly Gold Demand Trends report, adding that it’s “a further positive sign of recovery in the U.S. economy, coinciding with a correction in the gold price over the course of the quarter.”

Meanwhile, the amount of gold used for the fabrication of jewelry worldwide increased by 12% year-over-year to 551 metric tons for the first quarter of 2013, worth a record value of $28.9 billion, according to the report.

The dramatic decline in the value of gold has led to an increase in demand, the WGC said in the report. However, that demand is largely limited to India and China, who continue to distance themselves from the rest of the world in their passion for gold jewelry. The two countries combined now account for 62% of gold jewelry demand, according to the report. The U.S. for the first time in more seven years saw a year-over-year increase in gold jewelry demand.

Other highlights of the report include:

* Gold jewelry demand surged by 19% in China to a record level, led by Chinese New Year gifting in January and a rebound in consumer sentiment, WGC said. This is despite new in leadership in China calling for less conspicuous consumption. Demand saw the largest increase in 24k gold jewelry, although demand for 18k gold jewelry also increased.

* In India, year-over-year demand grew by 15% and came just short of beating the fourth quarter 2012 record. However, that gain was compared a very soft first quarter of 2012.

* Meanwhile, gold jewelry demand in Italy and the U.K. fell dramatically, 12% and 7%, respectively, as difficult economic continues continue to lead consumers to purchase lower-karat gold and silver jewelry.

 Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Website.

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Global Gold Jewelry Demand Shows Signs of Life Thanks to India

Gold for jewelry fabrication measured by value saw a 13 percent increase during the fourth quarter of 2012, primarily due to robust demand in India, according to the World Gold Council. It was strongest quarter for global jewelry demand since the first quarter of 2011 and may signal signs of strength after years of sluggish consumer demand.

In 2012, gold demand for jewelry saw a 3 percent rise in terms of value to $102.4 billion, year-over-year, “as consumers continued to allocate greater sums to gold jewelry, despite the 6 percent year-on-year rise in the price,” according to the WGC in its quarterly Gold Demand Trends report for the full year of 2012.

However, don’t open those champagne bottles just yet. In terms of volume, gold jewelry demand fell 3 percent in 2012 to 1,908 tons.

India, the world’s largest gold jewelry market and the world’s largest gold market, had by far the largest increase in gold jewelry demand. By volume the increase was 35 percent to 153 tons and by value it was 37 percent to $8.47 billion, according to Gold Demand Trends, released Thursday.

Gold jewelry, particularly in the economically struggling Western markets, has been a difficult sell since at least 2008 because investor demand caused the price of the precious metal to skyrocket. Outside of India and China, by far the two largest gold jewelry markets (and to a lesser extent the global luxury sector), there is really no indication that gold jewelry’s sluggish performance will change soon in most regions of the world.

Even in China (the world’s second largest gold jewelry market), 2012 was a year where gold jewelry demand was largely flat. In terms of volume the increase was 1 percent to 145.8 tons. In value, demand rose by 3 percent to $8.03 billion. India too had several serious economic issues during the first half of the year (including high import duties, market turmoil and a local spike in the price of gold) that resulted in a reduction for gold jewelry. The second half of the year saw a “strong revival” in gold jewelry leading to the exceptionally strong fourth quarter.

The WGC report also noted “a further erosion of tonnage in the Western markets,” again caused by the high price of the precious metal. Italy, which has one of the largest gold jewelry manufacturing centers in the world, saw demand by tonnage decline by 15 percent in 2012.

In the U.S., jewelry demand in 2012 fell 6 percent by volume to 108.4 tons and fell 2 percent by value to $2.21 billion.

All of the Far Eastern markets, not including China and India (which now account for 56 percent of the gold being used for jewelry), saw weaker demand in 2012, according to Gold Demand Trends.

Egypt surprisingly saw a 35 percent increase in gold jewelry demand by volume but the WGC noted that it was still far below levels prior to the 2011 political uprising. Demand in Russia (the fourth largest gold jewelry market) increased for the second straight year. The market expanded in volume by 7 percent in 2012 to 81.9 tons.

In addition to jewelry and various investment vehicles, gold is used by the world’s central banks and for a number of technological purposes (such as electronics and dentistry). Overall gold demand measured by value increased to an all-time record of $236.4 billion. By volume, gold demand fell by 4 percent to 4,405.5 tons.

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Web site.

Gold for jewelry fabrication measured by value saw a 13 percent increase during the fourth quarter of 2012, primarily due to robust demand in India, according to the World Gold Council. It was strongest quarter for global jewelry demand since the first quarter of 2011 and may signal signs of strength after years of sluggish consumer demand.

In 2012, gold demand for jewelry saw a 3 percent rise in terms of value to $102.4 billion, year-over-year, “as consumers continued to allocate greater sums to gold jewelry, despite the 6 percent year-on-year rise in the price,” according to the WGC in its quarterly Gold Demand Trends report for the full year of 2012.

However, don’t open those champagne bottles just yet. In terms of volume, gold jewelry demand fell 3 percent in 2012 to 1,908 tons.

India, the world’s largest gold jewelry market and the world’s largest gold market, had by far the largest increase in gold jewelry demand. By volume the increase was 35 percent to 153 tons and by value it was 37 percent to $8.47 billion, according to Gold Demand Trends, released Thursday.

Gold jewelry, particularly in the economically struggling Western markets, has been a difficult sell since at least 2008 because investor demand caused the price of the precious metal to skyrocket. Outside of India and China, by far the two largest gold jewelry markets (and to a lesser extent the global luxury sector), there is really no indication that gold jewelry’s sluggish performance will change soon in most regions of the world.

Even in China (the world’s second largest gold jewelry market), 2012 was a year where gold jewelry demand was largely flat. In terms of volume the increase was 1 percent to 145.8 tons. In value, demand rose by 3 percent to $8.03 billion. India too had several serious economic issues during the first half of the year (including high import duties, market turmoil and a local spike in the price of gold) that resulted in a reduction for gold jewelry. The second half of the year saw a “strong revival” in gold jewelry leading to the exceptionally strong fourth quarter.

The WGC report also noted “a further erosion of tonnage in the Western markets,” again caused by the high price of the precious metal. Italy, which has one of the largest gold jewelry manufacturing centers in the world, saw demand by tonnage decline by 15 percent in 2012.

In the U.S., jewelry demand in 2012 fell 6 percent by volume to 108.4 tons and fell 2 percent by value to $2.21 billion.

All of the Far Eastern markets, not including China and India (which now account for 56 percent of the gold being used for jewelry), saw weaker demand in 2012, according to Gold Demand Trends.

Egypt surprisingly saw a 35 percent increase in gold jewelry demand by volume but the WGC noted that it was still far below levels prior to the 2011 political uprising. Demand in Russia (the fourth largest gold jewelry market) increased for the second straight year. The market expanded in volume by 7 percent in 2012 to 81.9 tons.

In addition to jewelry and various investment vehicles, gold is used by the world’s central banks and for a number of technological purposes (such as electronics and dentistry). Overall gold demand measured by value increased to an all-time record of $236.4 billion. By volume, gold demand fell by 4 percent to 4,405.5 tons.

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Web site.

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