Gold Bullion Bar
Over the last 10 years gold prices have soared taking the cost of gold jewellery products with it. It was reported in the Economic Times last week that:
Gold prices are likely to touch fresh high in the second half of the current year on the back of investment demand and over-the-counter market, global metals consultant GFMS said in a report.
“Looking at the second half of 2009, investment demand, and especially its western elements, which includes activity in ETFs, futures and the OTC market, is expected to remain the driving force behind gold price movements,” GFMS Executive Chairman Philip Klapwijk said in the report. See story here
So are the investment markets driving the price of gold beyond the reach of the average gold jewellery customer. Unfortunately for the jewellery industry the answer is increasingly becoming “yes”. So what does this mean for gold jewellery demand? Well to us there has been a noticable shift from demand of 18ct gold jewellery to 9ct gold jewellery and an even bigger shift away from gold althogether to other precious metals. Platinum has become reletively more attractive and sales of palladium products, especially palladium wedding bands has gone through the roof. So don’t write off the expensive gold jewellery market, there will always be a demand, just diversify and protect yourself from the effects of the investment market.