The decline in gold prices has triggered a significant jump in jewellery sales in many markets around the world, with Indians leading the charge.
Between July and September, fans of the precious metal purchased gold bracelets, earrings, necklaces and other ornaments weighing more than 631.9 tonnes, the highest third-quarter jewellery demand since 2008, according to the World Gold Council.
Jewellery demand from Indian consumers reached a total of 211.1 tonnes, which represent the biggest chunk, or 33 percent, of the global consumption.
Chinese buyers came second, with a little over 187 tonnes of jewellery, up 4 percent from the same period last year.
Retail demand was down in the second quarter of the year, but sales were re-ignited in the middle of July, as prices dropped to Rs25,000 for every ten grams, triggering a buying frenzy. According to the World Gold council, retailers saw “unusually brisk trade” as a result of the price decline.
“After a weak first half-year, the jewellery market sparked into life in July. Global demand for jewellery grew 6 percent year-on-year,” the World Gold Council stated in its latest report.
“Traditionally, this period sees a lull in demand in the pause between the end of the April-May wedding season and the onset of autumn festivities, heralded by Diwali. The surge in demand persisted until mid-August.”
Within the Middle East region, jewellery demand reached 55.5 tonnes in the third quarter, up 8 per cent from a year earlier. Consumers from Saudi Arabia topped the table, registering 15.8 tonnes, followed by Iran (12.8 tonnex), Egypt (11.8 percent) and UAE (9.9 percent).
Total jewellery demand in the UAE dropped by 5 percent in the third quarter. The trend has been attributed to lower oil prices and “regional political tension”.