High Gold Prices, Faltering Economy Crush Gold Jewelry Demand
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.