High Gold Prices, Faltering Economy Crush Gold Jewelry Demand

by Deidre Woollard (RSS feed)
May 23rd 2008 at 11:02AM

If you've stopped buying the bling, you are far from alone. The World Gold Council reports that gold jewelry demand decreased 21 percent in the first quarter of 2008 compared to the same period in 2007. This was the lowest quarterly level since 1993. The rise in gold prices as wells as the economy were key factors. The demand for gold jewelry in the U.S. decreased as did the demand in Italy, the U.K., India, Japan and many key countries in the Middle East including Saudi Arabia. Where is the demand up? China's gold demand increased 15 percent, Russia also experienced a healthy increase as did Egypt. It is expected that the second quarter of 2008 will also likely be fairly grim for gold demand.

Tags: economy, gold, jewelry

Filed under: Jewelry

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JXG May 23rd 2008 12:10PM

Okay, just one more comment today before I am shut off. I like to buy gold ingots as treats for myself. I wear them around my neck on a chain, under my shirts. No one knows I have them. Just small quarter ounce ones. But I haven't bought once since last year because gold is just too expensive. I'm waiting for it to fall again, but the predictions are for $1500.00 an ounce. Way prohibitive.