PERTH (miningweekly.com) – China’s jewellery market has turned a corner, which could result in an upturn in global gold demand and gold’s long-term performance, the World Gold Council (WGC) said on Thursday.
China’s demand for gold jewellery more than tripled over the past 15 years, as the economy expanded and personal wealth grew, with the country now classified as the world’s largest gold consumer, with gold jewellery accounting for 30% of global gold demand.
However, China’s demand for gold jewellery shrank by one-third between 2013 and 2016, as the sector saw a record number of stores, excess capacity and fierce price war weighing down the sector.
A reinvention has seen jewellers modernise their product mix, improve design, and seamlessly blend customers’ online and offline experiences, a move which the WGC said was now starting to bear fruit.
In 2017, China recorded its first year of growth in jewellery demand since 2013, and the WGC noted that with continued innovation and efforts to reinvigorate the industry, the rise in 2017 could mark the return to sustained growth.