Gold, jewelry consumption set for fast growth

Sunday, January 27, 2008

Gold, jewelry consumption set for fast growth
A recent Ministry of Commerce report predicts that China's gold and jewelry consumption will maintain a fast growth trend this year. With the country's rapid economic growth and improving living standards, gold and jewelry have become hot consumption items for the Chinese, like houses and cars.A survey on market supply and demand development trends in the latter half of 2005 sponsored by the ministry, and an analysis of 600 kinds of main consumer goods by concerned experts, found that China has a large number of consumers for gold and jewelry, especially as the generation born between 1960s and 1980s enters the period of consumption.The survey also indicated that the depreciation of the US dollar in recent years has stimulated investment in gold and diamonds. In the first half of this year, the retail sales volume of 1,000 of China's major gold, silver and jewelry companies increased by 13.9%. China's diamond imports reached 900 million dollars in the period, up 17.5%. 25% of the respondents believed that gold ornaments prices will rise in the latter half of this year, and 19% said that the price of platinum ornaments will also rise. Also, 65% of the informants believed that the demand and supply for gold and jewelry will remain in balance in the second half of this year.China's platinum consumption exceeded half of the world's total output in 2005 and both China's gold output and sales volume rank fourth in the world. In 2004 and 2005, China's retail sales of gold and jewelry increased by 11.7% and 27.5%, respectively.