BUSINESS

Demand For Gold In Jewelries Is Increasing Despite Remaining Weakness

In a report published by the World Gold Council, the worldwide demand for gold used in jewelries has risen by 8 per cent and is now at 480.8 tons. Despite this fact, this is not a good number since it has been compared to the growth that was experienced on the same period of last year which is very weak. Many consumers nowadays are opting for other jewelries aside from the pure gold they are used to such as those that offered by a jewelry company called Ben Esse.

This may have contributed to the fact that the demand remains to be quite below the average in past quarters of the previous five years. The average is set at 586.2 tons according to the number released in a report made by the WGC entitled Gold Demand Trends.

For the first six months of 2017, the same scenario happened as the demand rose by 5 per cent compared to the extremely low level used as comparison last year. The demand of 967.4 does not even reach the 1,000 for the first half of the year. The demand not reaching a thousand tons have only been recorded four times by the WGC since it is the one responsible in tracking demand for gold jewelry.

India is considered as the top 2 when it comes to increase in gold jewelry demand. In fact, the demand has risen by 41 per cent in the country setting it at 126.7 tons. This can be a result of the stockpiling done during the month of May in order to avoid the increase in tax for goods and services that was set the following month.

China is said to have the biggest gold jewelry market in the world by during the second quarter it has seen the demand decrease by 5 per cent setting the number at 137.7 tons. This is the lowest number recorded in China for the last five years. The first half of 2016 showed that demand decreased by 4 per cent. Consumers nowadays are looking for other type of jewelry materials aside from gold such as those offered by Ben Esse which is made of various metals and gemstones.

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