5% Increase in Q3 Gold Jewelry Demand

Gold jewelry demand for the third quarter of 2013 increased 5 percent year-over-year to 486.7 tons, the World Gold Council said Thursday, marking the best third quarter performance for the precious metal since 2010. 

In terms of value, gold being used for jewelry for the period fell by 15 percent year-over-year, due to a drop in the trading price of the precious metal, according to the WGC’s Gold Demand Trends report for the third quarter of 2013. Demand for the period was worth $20.8 billion, the lowest quarterly value since the third quarter of 2010.

Global growth for the period was led by high-karat gold jewelry purchases in Asia, the Middle East and the US, 

“An almost universal phenomenon in the third quarter was the increasing popularity of higher carat jewelry,” the WGC said in its report. “Across Asia, the Middle East and in the US, higher carat jewelry was noted as an area of particular growth as the increased investment properties associated with gold of higher purity came to the fore. The fact that jewelry retailers in a number of markets were increasingly stocking investment products (small bars and coins) provided further evidence of the greater blurring of the jewelry/investment distinction.”

Consumers in China generated 163.7 tons of jewelry demand in the third quarter, making it by far the largest single jewelry market. The country’s year-to-date, demand of 518 tons already equals the same amount for the full-year 2012.

“To some extent, exhaustion set in towards the end of Q3 after such a frenetic second quarter, but continued expansion of the retail network confirms that the trade sees prospects for growth,” the WGC said.

Increases were reported in 24k jewelry (known as “chuk kam”), which has a purity rating of 95.95 percent and in “four nines” gold (gold jewelry of 99.99% purity, compared with the typical 24-carat purity of 99.95%). The WGC explained that the former is unique to China and is most popular with consumers in lower tier markets and rural areas as an investment hedge.

Mainland Chinese consumers also attributed to a 28 percent increase in gold jewelry consumption in Hong Kong to 7.5 tons.

In the US, the WGC noted that “demand was a key development.” Gold jewelry demand for the third quarter rose 14 percent year-over-year to 43.4 million tons.

With the exception of fourth quarter demand (driven by holiday sales), the third quarter was the first quarter in four years in which gross jewelry demand exceeded recycling—creating net positive jewelry demand,” the WGC said. “Since Q3 2009, gross new quarterly jewelry demand had been exceeded by the recycling of old gold jewelry as distress selling took off during the economic downturn,” WGC said. “Increasingly positive sentiment among US consumers during the third quarter reversed this trend.”

The report also notes a shift towards 18k jewelry from 14k.

“Given recent developments in the US, consumer sentiment has taken a hit early in the fourth quarter, but the seasonal impact, together with prices holding below US$1,400/oz, suggests a certain amount of resilience,” the WGC said.

India, one of the world’s largest markets for gold jewelry, saw demand drop by 23 percent year-over-year to 104.7 tons due to import restrictions imposed by the government. “Demand for gold jewelry among Indian consumers remains strong, but reduced supply has prevented this demand from being fully realized,” the WGC said.

"The smaller Asian markets had robust growth for the period, with the exception of South Korea where weak consumer sentiment and a sluggish domestic economy dampened demand," the WGC said. "Across the rest of the region, there was a trend for higher karat jewelry pieces of relatively simple design as consumers across the region took advantage of gold’s increased affordability."

Gold jewelry demand in the Middle East increased 9 percent to 51.2 million tons, due to lower prices across the region, the WGC said. The “unsurprising” exception was Egypt.

“The emphasis on 22-karat gold at the expense of 21- and 18-carat diamond-set jewelry suggests demand was stronger among domestic consumers relative to western tourists.”

The third quarter in Turkey, which is traditionally strong, saw year-over-year demand increase 14 percent. In value terms, demand was virtually flat, due to a 12 percent decline in the local currency price of the precious metal.

Russia’s growing middle class, armed with greater disposable income, helped generate a 7 percent year-over-year growth in jewelry demand.

“European markets were again the exceptions to the more positive global picture, with both UK (-14%) and Italy (-7%) posting year-over-year declines due to “economic concerns,” WGC said.

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British Firm Mappin & Webb Reinvents Itself with New Creative Director and Jewelry Collection

The motif of this elaborate 18k white gold cuff from the "Empress" collection is repeated in concentric circles set with 6.15 carats of diamonds and 5.84 carats of round-cut pink gems.

Mappin & Webb is a company that has undergone many changes in its 238-year history but always had Great Britain running through its veins.

Founded in 1775 in Sheffield as a cutlery firm, the company eventually developed a specialty as a metalsmith. It is now primarily known as a jewelry and gift retailer. It has been commissioned by royalty since 1905 and currently holds Royal Warrants (given to tradespeople who supply goods or services to a royal court or certain royal persons) as a silversmith to Queen Elizabeth II and Prince Charles.

Today, it is undergoing another transformation under the direction of its new creative director, Elizabeth Galton, best known as the creative director of Links of London. This means revitalizing just about everything, from store concept and advertising campaigns through to collections and brand packaging. 

The Fortune Drop Necklace uses the infinity band as a small pendant, suspended from a double-loop 18k yellow gold chain.

"We feel we have a moral duty to return this glorious British brand back to an international stage and it is a journey we feel very passionate about," Galton said.

Galton recently unveiled new collections that reinterpret historic motifs from the company’s archives, making them relevant to a modern audience through contemporary designs.

The “Empress” collection was inspired by a bespoke Mappin & Webb design for the Queen of Siam, commissioned in the 1920s and rediscovered in the jewelry house’s historic archive.

The delicate and decorative circular motif was characteristic of brooches beloved by the Eastern aristocracy of the time. The 24-piece collection of diamond rings, necklaces, bracelets and earrings unite mythical exoticism of the East with a playful, modern spirit. It features modern-18k white, yellow and rose gold set with brilliant round-cut diamonds and, in some cases, pink sapphires.

The Fortune collection includes infinity bands, bracelets, necklaces and earrings pairs gleaming 18k white, yellow or rose gold with strands of sparkling diamonds.

Platinum necklace with Gemfields’ Zambian emeralds, 33.86 carats and diamonds, 7.26 carats.

The company also provided a one-of-kind necklace using emeralds provided by Gemfields, a colored gemstone miner and marketer. It was part of a bespoke jewelry collection created by leading designers with emeralds, rubies and amethysts from Gemfields.

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New Italian Jewelry Designs from VicenzaOro

The subtle differences of the two tones of gold color and the texture of the precious metal are the hallmarks of Anna Maria Cammilli. The simplicity of this nature-inspired motif is used throughout the collection in complicated ways. Diamond accents enhance the design.

The recently concluded VicenzaOro Fall jewelry tradeshow may have marked a turning point for the Italian jewelry industry, which has been suffering due to the global recession, the spike in gold prices and high labor costs.

The butterfly from Damiani uses yellow gold accented by brown and white diamonds, and amethysts. Each butterfly is made with a variety of material combinations and can be worn as a pendant, brooch or set onto a ring.

At this year’s show, held September 7 -11, approximately, 1,200 Italian and foreign brands from 30 countries presented a breadth of jewelry products to more than 18,000 buyers (10,879 from Italy and 7,160 from 111 other countries).

18k yellow gold cuff with diamond pavé accent by Chimento.

Show officials were particularly excited about the “return” of some Italian retailers, seeing it as “an encouraging sign considering the much-desired end of the most critical phase of the recession.”

A silver star-shaped ring with a white pearl by Mayumi.

The show numbers coincide with data from the Italian government reporting second quarter growth for Italian jewelry exports, after two years of decline. Growth was recorded in terms of value (6%) and quantity (2.6%) over the same period of the previous year. Exports to the US, the world’s largest jewelry market, increased 12 percent in value in the second quarter.

From Fope’s Flex’it collection, patented ‘roll on’ mesh chain bracelets are crafted in 18k gold and fully flexible, without clasps. The Niue line is designed with a refined version of the classic gold mesh, enriched with black or white diamonds, multiple rondels and limited edition pink sapphire or gold cognac diamond balls.

“Among the industry players there is an atmosphere of moderate confidence,” show officials said.

Rose gold bracelet in a flowing design partially covered with white diamond pave by I Gregori Milano.

VicenzaOro, held four times a year, serves as a showcase of beautiful objects that combine artistry, international fashion trends and technical knowhow. Italian fine jewelry in terms of design and craftsmanship is unparalleled in the world of jewelry making. On this level, the show did not disappoint.

Inspired by the Boboli Gardens this collection of handmade jewellery by Nouvelle Bague uses in gold and diamonds, combined with colored enamel.

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Rings from Porrati with white pearls and rose gold; with pink sapphires set on rose gold; a rose gold ring; and a thin rose gold band set with pink sapphires.

 

I added a piece from Brazilian designer Carla Amorim who was inspired by the formation of sand dunes for these rose gold earrings.

Gold Jewelry Is Back as Global Demand Surges to 5-Year High

18k Picasso Gold brooch, Tiffany & Co.

Demand for gold jewelry in the second quarter surged to its highest level in five years due to a sharp drop in the price of the precious metal, the World Gold Council said Thursday.

Gold jewelry demand by volume increased 37 percent to 575.5 tons, according to the WGC’s Gold Demand Trend report for the second quarter of 2013. The demand for gold was so great that it far outweighed a decline in the average gold price as the demand in terms of value rose 20 percent to nearly $26.2 billion, the fourth highest on record.

The price of gold for the second quarter fell by more than $400 an ounce or 12 percent, according to the WGC, the marketing development organization for the gold industry.

“Although jewelry demand is influenced by a wide set of factors, including economic growth, consumer sentiment and disposable income, to name a few, all were eclipsed by the effect of the drop in the gold price,” the WGC said in its report.

The upward trend was “almost universal,” the WGC said, with the most notable year-over-year improvements in India, China, the Middle East and smaller Asian countries. Demand included an increase of higher-carat jewelry. Europe was the only region where jewelry demand failed to rise.

The US reported its second consecutive quarter of growth. Demand remained the healthiest at the higher end of the market, however, the WGC noted that the middle market is beginning to shift from lower- to higher-carat gold. The WGC also said the lower prices provided an opportunity for wholesalers to stock early for the Christmas holiday season.

India and China, again, generated the largest volume increase—almost 120 tons of the 155-ton increase in demand was from these two countries, according to the report. Hong Kong generated the strongest percentage growth in demand (approximately 65%), surging to a record 12.1 tons. In fact, double-digit growth was commonplace throughout the Asian markets, with the exception of Japan, which was unchanged. In Indonesia, demand of 7.8 tons was the strongest second quarter since Q2 2009.

In Turkey, a gold jewelry manufacturing center, demand hit a record high in terms of local currency value, led by consumer bargain hunting (concentrated in 22k market for investment) and trade inventory building. Growth across the Middle Eastern region was almost purely price-related, the WGC said.

The improvement in the US market was not replicated in the western European market, “where negative economic conditions overwhelmed the positive impact of lower prices,” the WGC said. In Italy, another major jewelry manufacturing center, demand fell by nearly 10 percent and in the UK demand dropped by more than 20 percent.

Jewelry demand in Russia “continued to normalize towards pre-crisis levels,” the report states, with demand concentrated on the high and low ends of the market.

The Gold Demand Trends report also tracks demand in gold for investment and technology purposes. In the second quarter, overall gold demand fell by 12 percent to 856.3 tons due to the drastic drop in the price of the precious metal. This translated to a 23 percent drop in value to $39 billion—its lowest level in more than five years.

“Record quarterly investment in gold bars and coins was countered by sizeable outflows from ETFs as western investors reacted to a seemingly more positive outlook for the US economy and an eventual tapering of quantitative easing,” the WGC said.

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Gold, Diamonds and Crystals Glitter, Sparkle, and Shine at Las Vegas Jewelry Week

The World Gold Council's LoveGold exhibit at Couture.

Not everything was for sale at the jewelry shows in Las Vegas this past week although I suppose someone could have purchased the 27-pound gold bar valued at more than $500,000 from the LoveGold Exhibit at the Couture jewelry show.

Gold jewelry from Couture Show jewelry exhibitors.

Up on a stage above the tradeshow exhibitors at Wynn Las Vegas, the World Gold Council’s exhibition included art creations, curated gold jewelry used at red carpet events and selected gold pieces from the vendors at the tradeshow. LoveGold is the fashion jewelry initiative of the WGC, the marketing development organization of the gold industry.

One of the gold fashion displays at the LoveGold exhibit.

Many of the pieces were from the catwalk at Cannes where they were part of a special fashion show that was curated by Carine Roitfeld, the former editor-in-chief of Vogue Paris, to benefit amfAR, the foundation for AIDS research.

“We want to showcase the best that gold can be regardless of origin or price point,” said Sally Morrison of the World Gold Council. “The exhibition at Couture was a way of introducing the beginning of this activity to the brands and press at the show.”

A display at the "Diamonds with a Story" Rio Tinto Diamonds exhibition that highlights diamond origins.

As previously noted, Rio Tinto Diamonds presented an exhibition at the JCK Luxury and JCK Las Vegas tradeshows titled “Diamonds with a Story.” It featured jewelry created for the US market by eight North American designers based on the following four topics: “Origin,” “Cutting Impact,” “Mixed Medium” and “Color My World.” The designers created their works using Rio Tinto's colored diamonds from its Argyle mine in Australia and white diamonds from its Diavik mine in Northwestern Canada.

Varieties of Rio Tinto diamonds.

The exhibit is part of a marketing program by the mining company for the jewelry trade based on its own consumer research. The jewelry collections based on the four stories identify consumers' desire for the following attributes:

• Identifying the place of origin of the diamond they buy;
• Knowing that their diamond purchase is having a positive impact;
• Differentiating designs and concepts; and
• Access to natural colored diamonds

“We are excited by how well the 'Diamonds with a Story' platform is resonating," said Rebecca Foerster, manager of Rio Tinto Diamonds US Representative Office. “This appetite for innovation is good news for miners, manufacturers, retailers and ultimately the consumer.”

Elaborate and colorful jewelry design by David Mandel, part of the Swarovski Elements exhibit at JCL Las Vegas.

Swarovski Elements, the premium brand division of the world-renowned crystal company, Swarovski, provided a fashion-forward jewelry exhibition at JCK Las Vegas called “World Jewelry Facets,” featuring collaborations with designers and artists representing several mediums who created colorful designs using Swarovski crystal.

A necklace by Tim Hosier and Brian Thorson.

The creations ranged from elaborate, fanciful designs to more wearable pieces. Designers included Tim Hosier and Brian Thorson, known for their home accessories designs, to entertainment industry designer David Mandel.

Jewelry by American artists at the Swarovski Elements exhibit

There is also a charitable element with designs created by Senhoa, a non-profit organization and fashion brand that produces jewelry made by survivors of human trafficking. The Senhoa line on display was designed by Canadian model, Coco Rocha, and handcrafted by survivors of exploitation in Cambodia.

Jewelry by the non-profit organization and fashion brand, Senhoa, handcrafted by survivors of exploitation in Cambodia,

 
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Global Gold Jewelry Demand Shows Signs of Life Thanks to India

Gold for jewelry fabrication measured by value saw a 13 percent increase during the fourth quarter of 2012, primarily due to robust demand in India, according to the World Gold Council. It was strongest quarter for global jewelry demand since the first quarter of 2011 and may signal signs of strength after years of sluggish consumer demand.

In 2012, gold demand for jewelry saw a 3 percent rise in terms of value to $102.4 billion, year-over-year, “as consumers continued to allocate greater sums to gold jewelry, despite the 6 percent year-on-year rise in the price,” according to the WGC in its quarterly Gold Demand Trends report for the full year of 2012.

However, don’t open those champagne bottles just yet. In terms of volume, gold jewelry demand fell 3 percent in 2012 to 1,908 tons.

India, the world’s largest gold jewelry market and the world’s largest gold market, had by far the largest increase in gold jewelry demand. By volume the increase was 35 percent to 153 tons and by value it was 37 percent to $8.47 billion, according to Gold Demand Trends, released Thursday.

Gold jewelry, particularly in the economically struggling Western markets, has been a difficult sell since at least 2008 because investor demand caused the price of the precious metal to skyrocket. Outside of India and China, by far the two largest gold jewelry markets (and to a lesser extent the global luxury sector), there is really no indication that gold jewelry’s sluggish performance will change soon in most regions of the world.

Even in China (the world’s second largest gold jewelry market), 2012 was a year where gold jewelry demand was largely flat. In terms of volume the increase was 1 percent to 145.8 tons. In value, demand rose by 3 percent to $8.03 billion. India too had several serious economic issues during the first half of the year (including high import duties, market turmoil and a local spike in the price of gold) that resulted in a reduction for gold jewelry. The second half of the year saw a “strong revival” in gold jewelry leading to the exceptionally strong fourth quarter.

The WGC report also noted “a further erosion of tonnage in the Western markets,” again caused by the high price of the precious metal. Italy, which has one of the largest gold jewelry manufacturing centers in the world, saw demand by tonnage decline by 15 percent in 2012.

In the U.S., jewelry demand in 2012 fell 6 percent by volume to 108.4 tons and fell 2 percent by value to $2.21 billion.

All of the Far Eastern markets, not including China and India (which now account for 56 percent of the gold being used for jewelry), saw weaker demand in 2012, according to Gold Demand Trends.

Egypt surprisingly saw a 35 percent increase in gold jewelry demand by volume but the WGC noted that it was still far below levels prior to the 2011 political uprising. Demand in Russia (the fourth largest gold jewelry market) increased for the second straight year. The market expanded in volume by 7 percent in 2012 to 81.9 tons.

In addition to jewelry and various investment vehicles, gold is used by the world’s central banks and for a number of technological purposes (such as electronics and dentistry). Overall gold demand measured by value increased to an all-time record of $236.4 billion. By volume, gold demand fell by 4 percent to 4,405.5 tons.

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Montblanc Celebrates Endless Love With Its Infiniment Vôtre Jewelry Collection

Infiniment Vôtre earrings

Montblanc has released a new collection of delicate, simple and elegant rose gold jewelry based on the variations of the symbol that represents infinity.

Known as Infiniment Vôtre (infinitely yours), the collection celebrates true romantic love or the everlasting bonds of friendship through the graceful intertwining curves that represent variations on the horizontal eight configuration: the universal symbol for infinity.

Infiniment Vôtre bracelet

Created by Susie Otero, Montblanc’s managing director of Jewelry, the collection consists of six crafted pieces: a ring, earrings, necklace, pendant, bracelet and bangle. They are all made of pink gold, which she says “echoes the depth of the emotions evoked.” On each piece, a brilliant diamond is set within a Montblanc star emblem, “at once a discreet signature and a sparkling reminder of the uniqueness of each special relationship,” she adds.

Infiniment Vôtre ring

While the motif may be simple, as with all Otero’s work, the complexity is in the details. In this case the symbol changes from the more basic form on the necklace to more complicated interpretations for the rings and earrings. The other hallmarks of her style are highly polished surfaces and the endless use of subtle curves. All of this adds movement to her pieces when the light hits them and as they move with the woman. The hint of diamonds adds a delicate bit of sparkle to her highly feminine jewelry. 

The collection is now available at Montblanc boutiques worldwide.

Infiniment Vôtre necklace

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Kim Kardashian, Kanye West Tweet Matching Gold Jewelry

Kim Kardashian and Kanye West spent the weekend in New York sporting giant gold cuffs and bracelets.

Kardashian tweeted photos of the jewelry they wore at a restaurant. While they both share a taste for large yellow gold pieces West seems to lean toward more elaborate designs while Kardashian prefers a shiny, sleek look.

In the two tweeted photos by Kardashian, they are clinking champaign glasses at a restaurant table and posed with all of their bracelets with the caption, “His & Hers.”

The couple was reportedly spotted at The Book of Mormon play on Broadway.

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India’s February Gems and Jewelry Exports Down 39%

Fewer orders from western markets have resulted in a 39.3 percent decline in February gems and jewelry exports to $2.7 billion, according to India’s Gem and Jewellery Export Promotion Council.

The biggest losses among India's gemstone and jewelry manufactures were led by a 53.7% drop in polished diamond orders, followed by a 30.3 percent drop in gold jewelry exports. Exports of rough diamonds fell by 15.6 percent for the period and colored gemstones fell by a more modest 3.7 percent.

Gains for the month were led by silver jewelry (39.5 percent) and gold medallions and coins (15.7 percent).

GJEPC, the organization the leads the India gems and jewelry industry, reportedly blames the decline on fewer orders from the U.S. and Europe, whose economies are still struggling. Other major export markets for the gem and jewelry manufacturers are the UAE and Hong Kong.

The organization also reported that gems and jewelry exports increased by 4 percent from April 2011 till February.

The 2012 Niche Award Winners for Jewelry Design

Cityscape Lisa Hawthorne, the winner in the gold jewelry with stones category. 

The annual Niche Awards, which honors the best in contemporary design by American and Canadian artisans, were presented February 18 during a ceremony at the Buyers Market of American Craft tradeshow in Philadelphia.

Professionals and college students received awards in several categories including gold, silver and gemstone jewelry; fashion accessories; fiber arts and quilts; baskets; blown, fused and cast glass; metalwork; outdoor art; tables and seating; cabinetry; and teapots.
The awards competition, in its 22nd year is sponsored by Niche magazine, which serves retailers of American-made and Canadian-made gift and art products.

You can view the winners in the jewelry categories by following this link.

PROFESSIONAL WINNERS:

Fashion Jewelry, Penelope Bracelet, Kathleen Nowak Tucci 

Fine Jewelry, Mizu Wave Ring, Andrea Williams

Gold Jewelry, Circus, Circus, Pierre-Yves Paquette

 Gold Jewelry with Stones, Cityscape, Lisa Hawthorne

Jewelry Sculpture to Wear, Reconfiguring the Ordinary: Twist Looped and Linked, Yong Joo Kim

Silver Jewelry, Collar, Michael and Maureen Banner.

Silver Jewelry with Stones, Le Mirage, Aleksandra Vali

Wedding Jewelry, Cell Band Wedding Set, Emily Johnson

STUDENT WINNERS:

Fashion Jewelry, Summer Dream, Leeyeon Yoo

Fine Jewelry, Beautiful Coexistence, Hyangmi Kim

Jewelry Sculpture to Wear, Garden of Eden - Haircomb, Kristopher Leinen

High Gold Prices Deter Jewelry Demand

 

Global jewelry demand for gold declined 15 percent, year-over-year, to 476.5 tons in the fourth quarter of 2011, the World Gold Council reports. In value terms, demand was 5 percent higher at $25.9 billion, a quarterly record. 

For 2011, demand fell 3 percent, year-over-year to 1,962.9 tons, as the price of gold rose by 28 percent for the period. In value terms, demand grew by 25 percent to a record $99.2 billion, the WGC said in its Gold Demand Trends report. 

India and China account for 55 percent of total gold jewelry demand, WGC said.

The WGC defined the year for gold jewelry demand as a tale of two halves. The first half of the year saw demand increase by 9 percent, largely due to the precious metal’s two largest markets—China and India. Demand was also aided by a couple dips in price during the period.

The second half of the year saw demand decline by 13 percent to 941.2 tons due to “record gold prices reached during the third quarter, combined with an increase of price volatility, deterred consumers in a few key markets,” the WGC said in its Gold Demand Trends report for 2011.

Jewelry demand in India, the world’s largest market for gold, fell 44 percent (down 22 percent in value terms), year-over-year, to 103 tons. Annual demand of 567.4 tons was 14 percent below 2010 (down 13 percent in value terms). 

In China, the second largest gold market, fourth quarter gold jewelry demand was slightly above last year’s totals at 131.4 tons. The net result was an annual demand increase of 13 percent to 510.9 tons.

Fourth quarter jewelry demand in Hong Kong rose 37 percent to 7.1 tons, bucking the decline trend in Asia, due to “record inflows of tourists from mainland China, who continue to take advantage of lower taxes levied on gold in Hong Kong,” the WGC said.

In the U.S., gold jewelry continued its long term downward path with fourth quarter demand down 9 percent to 42.7 tons while full-year demand fell by 11 percent to 115.1 tons. By value, gold jewelry demand rose 12 percent for the quarter to $2.3 billion and 15 percent for the year to $5.8 billion. High prices for the precious metal, price volatility, a fragile labor market, depressed real estate prices and volatile stock market all contributed to hesitant consumer demand and fragile consumer confidence, WGC said.

“The independent, smaller jewelry stores have now begun to adopt a shift to silver jewelry that began among the major retailers in late 2010-early 2011,” WGC said.

In Italy, a major gold jewelry manufacturing center, fourth quarter gold jewelry demand dropped 17 percent to 14.8 tons (up 3 percent in value). For the year demand fell 17 percent to 28.8 tons. “Price remains the major hindrance to Italian gold demand, with increasing substitution to silver and other metals in the lower price ranges,” WGC said.

UK fourth quarter old jewelry demand declined 19 percent to 11.2 tons and down 17 percent 17 percent to 22.6 tons for the year.