Gold: We know ancient Egyptians revered so that they buried their pharaohs adorned with gold jewellery and filled tombs with countless golden artefacts. Ancient Romans also valued gold and regarded it as a symbol of wealth. We know that throughout the ages different cultures valued it and that people continued to buy gold as a safe haven. In many cultures gold jewellery serves as more than just a status symbol but currency they can rely on in times of financial trouble. Of all the gold that is produced and sold, gold jewellery is more in demand than investment grade bullion coins and bars. The gold jewellery industry accounts for more than 50% of the gold that is produced.
Gold jewellery is especially important in Asian cultures. China and India are the foremost gold jewellery consumers in the world. The consumption of gold jewellery in these countries is driven by culture and traditions like weddings. However in the last 12 months there has been a decline in production and in the consumption of gold jewellery in the form of jewellery.
The top 10 countries that buy gold jewellery are:
- India
- China
- U.S.
- The Unites Arab Emirates
- Indonesia
- The United Kingdom
- Russia
- South Korea
- Iran
- Italy
Looking back at the latest figures, India and China continue to be the top gold jewellery consumers. The other countries have seen a number of fluctuations that have mostly been driven by the economy and the changing priorities of governments.
The World Gold Council keeps track of what is happening in the gold industry. The organisation tracks trends and keeps data of how much gold is produced and where the old is being used.
2020 has been a tumultuous year for everyone. The gold industry has also suffered set backs and declining demands. Looking back at 2019, China and India led the pack of countries that consumed the most gold, accounting for 57% of gold being used in the jewellery industry.
India
India has been the global leader of gold jewelry for year, however by the end of 2019 this demand had waned. Many hoped it would get on track in 2020 and then the Coronavirus pandemic happened. There were fewer weddings and religious gatherings which usually account for a large portion of the gold jewellery India produces. In tough times, people tend to sell their gold so the demand for the yellow metal was offset by the increase in the exchange of used and scrap jewellery.
China
At the end of 2019, the demands for gold jewellery up by 9.7% year on year. People were consuming less than the 65% of gold they have been known to consume. This became even worse as the country grappled with the global health pandemic that originated from one of its provinces.
United States of America
The consumption of gold jewellery in the US has almost ground to a halt because of the Corona Virus and the rising price of gold. The decline in gold jewellery sales actually began in 2019.
Germany
In Europe, Germany is the fifth biggest gold jewellery consumer. In 2019, the country bought a cumulative 5.4 tonnes of gold. However, it too began buying less gold jewellery. Instead, it shifted its interest to technology.
Overall, the decline in jewellery sales has been seen throughout the world. The elevated gold price, the current global pandemic and the state of the economy in most countries have adversely affected gold jewellery consumption. Things might change when the vaccine is rolled out throughout the world and countries return to normal.