2008 Gold Market Trends
Source: World Gold Council (1/21/09)
"The most compelling reason for the rise in jewelry demand was the price movement during the quarter."
The third quarter witnessed a recovery in global jewelry demand after three quarters of relative weakness. Demand jumped 27% from Q2 to 647.6 tonnes. A comparison with Q3 07 reveals a more subtle rise of 8%, although in dollar terms this translates into a 38% increase.
The rise in jewelry demand was by no means universal, however, as strong rises in some countries—notably India (+29%), the Middle East (+15%) and China (+10%) were partly offset by large declines among other countries, most notably the U.S. (-29%).
The most compelling reason for the rise in jewelry demand was the price movement during the quarter. Consumers across many countries were eager to take advantage of more affordable gold prices, especially in India where lower local gold prices, as well as a feeling of enhanced wealth among the rural community following a good monsoon rainfall, brought consumers flocking to the market.