A Celebration of Jewelry and the Business Behind the Beauty

The cost and demand for gold as an investment vehicle that resulted in a slight decrease in their use for making jewelry in the second quarter, according to the World Gold Council. However, the organization said the drop was illuminated in key Asian markets.
"During the last quarter, gold jewelry demand in key Asian markets has been challenged by the rise in local prices," said Marcus Grubb, WBC Director Investment. "But we have a slowdown in the pace of decline in demand to see, gives a strong outlook for the recovery takes place in this important market segment."
In the face of price increases, global jewelry consumption reached 408.7 tons during the second quarter of 2010, 5 percent below a year earlier, WGC said in its report on gold demand trends for the second quarter of 2010.
Gold jewelry demand in India, the largest jewelry market, a decline of only 2 percent to 123 tonnes. Expressed in local currencies, this translates into an increase of 20% of demand, the WGC said. Meanwhile, China saw the demand for gold jewelry rose by 5 percent to 75.4 tonnes. While growth in demand in tonnage, which was prevented by extreme weather, growth in the size of the value of local currency demand is 35 percent.
The WGC is not in the number of U.S. jewelry demand the release of the report for the media.
Total gold demand in the second quarter rose 36 percent to 1050 tons, most of the gold that the strong investment demand compared to the second quarter of 2009, WGC report reflects. In terms of value of the U.S., demand increased 77 percent to 40.4 billion U.S. dollars.
Investment demand is the strongest segment to the second quarter, posting increased 118 percent to 534.4 tonnes compared with 245.4 tonnes in the second quarter of 2009. The largest contribution comes from segments increase ETF investment demand, which grew by 414 percent to 291.3 tonnes, the highest second quarter on the plate. Physical demand for gold bars, which most non-Western markets, an increase of 29 percent for the period to 96.3 tons covers.
"While many investors in gold as a" flight to quality "in response to the uncertain financial climate, these rates have proved resilient despite a sense of optimism began to return to a number of public investments," says Grubb. "Besides the ETF market and the physical bars and coins market, gold investment demand through the Internet-based platform that tends to further sources of investment demand."
The WGC said that gold demand will remain strong in 2010 driven by rising demand from India and China, and rising global demand for investment is driven by uncertainty about the debt and economic recovery.
"Economic uncertainty and the ongoing quest for the asset is less stable and more diverse as gold, the investment demand for gold in the near future to support," said Grubb. "Moreover, in light of the remaining concerns about the level of public debt and the euro, the European retail investor demand has increased."
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