SurveysJun 22, 2021
Diamond Jewelry Sales Strong, Says NDCMajorsAug 16, 2021
After a Turbulent Year, Here’s Where the Gold Price Is Now
National Jeweler examines the average price of the metal in H1 and the U.S. market’s “considerable growth” in gold jewelry demand.
Hi June Parker’s engravable ID bracelet with diamonds in 14-karat yellow gold ($750 for a 6-inch or 6.5-inch bracelet)
London—The past year-and-a-half has been, unsurprisingly, something of a roller-coaster ride for the price of gold.
The precious metal started 2020 averaging $1,560.67 an ounce, according to Kitco, then rose until mid-March, when it fell to a low of $1,474.25 as governments worldwide began enacting stay-at-home orders because of COVID-19.
From there, the price of gold started climbing, rising every month until it passed the $2,000-per-ounce mark in August—its highest point in eight years.
It didn’t stay there long, dropping back down and finishing the year with a cumulative average of $1,769.64 an ounce.
This year hasn’t quite seen the peaks and dips experienced in 2020, but notable swings in 2021 include a high of $1,902.75 in June and a low of $1,683.95 in March, Kitco charts show.
According to Kitco, the gold price has averaged $1,803.57 per ounce so far this year.
The World Gold Council said the price of gold averaged $1,816.50 per ounce in the second quarter, only slightly higher than the first quarter and up 6 percent year-over-year.
Meanwhile, gold jewelry demand is working its way back up in some markets after being dealt a huge blow last year during the COVID-19 pandemic, WGC’s latest “Gold Demand Trends” report shows.
Global gold jewelry demand in Q2 was 60 percent higher year-over-year at 390.7 tons, but that’s compared with Q2 2020, when demand was “slashed” by the pandemic.
WGC noted the strong second quarter in 2021 was bolstered by global economic recovery and improving consumer sentiment.
While gold jewelry demand is improving, it still has a way to go before it reaches pre-pandemic levels, WGC added.
When compared with 2019, demand remains “significantly weaker”—second quarter demand is 26 percent lower than Q2 2019, and H1 demand is down 18 percent.
H1 demand of 873.7 tons was 17 percent lower than its 2015-2019 average in the six-month period, WGC reported.
On a positive note, the United States was one of the markets generating “considerable growth” in gold jewelry demand so far in 2021, proving to be more resilient this year.
Related stories will be right here …
The precious metal started 2020 averaging $1,560.67 an ounce, according to Kitco, then rose until mid-March, when it fell to a low of $1,474.25 as governments worldwide began enacting stay-at-home orders because of COVID-19.
From there, the price of gold started climbing, rising every month until it passed the $2,000-per-ounce mark in August—its highest point in eight years.
It didn’t stay there long, dropping back down and finishing the year with a cumulative average of $1,769.64 an ounce.
This year hasn’t quite seen the peaks and dips experienced in 2020, but notable swings in 2021 include a high of $1,902.75 in June and a low of $1,683.95 in March, Kitco charts show.
According to Kitco, the gold price has averaged $1,803.57 per ounce so far this year.
The World Gold Council said the price of gold averaged $1,816.50 per ounce in the second quarter, only slightly higher than the first quarter and up 6 percent year-over-year.
Meanwhile, gold jewelry demand is working its way back up in some markets after being dealt a huge blow last year during the COVID-19 pandemic, WGC’s latest “Gold Demand Trends” report shows.
Global gold jewelry demand in Q2 was 60 percent higher year-over-year at 390.7 tons, but that’s compared with Q2 2020, when demand was “slashed” by the pandemic.
WGC noted the strong second quarter in 2021 was bolstered by global economic recovery and improving consumer sentiment.
While gold jewelry demand is improving, it still has a way to go before it reaches pre-pandemic levels, WGC added.
When compared with 2019, demand remains “significantly weaker”—second quarter demand is 26 percent lower than Q2 2019, and H1 demand is down 18 percent.
H1 demand of 873.7 tons was 17 percent lower than its 2015-2019 average in the six-month period, WGC reported.
On a positive note, the United States was one of the markets generating “considerable growth” in gold jewelry demand so far in 2021, proving to be more resilient this year.
The market’s gold jewelry demand in Q2 was $22.8 billion, taking H1 total spending to $50.7 billion, which is 18 percent higher than the 2015-2019 H1 average and the highest H1 total since 2014.
(WGC noted that continued travel restrictions and varying degrees of market lockdowns across the globe continue to disrupt data collection, so some markets “may be more susceptible than usual to future revisions once normal fieldwork can resume.”)
The WGC attributed Q2 demand for gold jewelry in the U.S. to the same factors that supported the market in Q1—improved consumer sentiment due to the vaccination program, federal income support measures, and economic growth.
U.S. consumers also remain somewhat limited in their ability to travel, thereby diverting disposable incomes to other areas, including gold jewelry.
China also has experienced strong demand for gold jewelry so far this year, with gold jewelry demand in the first half of the year the highest it’s been since 2015.
H1 jewelry demand was 338 tons, a 122 percent increase year-over-year and 6 percent increase over H1 2019, amid a strengthening Chinese economy and increasing disposable incomes.
Meanwhile, struggles in the Indian market—a huge player when it comes to gold jewelry—greatly impacted the overall numbers.
India was one of the hardest hit markets in 2020 and experienced a devastating second wave of COVID-19 in Q2 2021.
After starting the second quarter on a strong note, demand weakened toward the end of April before coming to a near-standstill in May, WGC said, as the second wave swept across India and resulted in regional lockdowns and fears of economic shutdown.
H1 gold jewelry demand in India totaled 157.6 tons, which is 46 percent below H1 2019 and 39 percent lower than the H1 average from 2015-2019.
WGC said it is optimistic about the rest of the year for the Chinese market but noted the outlook for the remainder of 2021 in India was “mixed,” especially with the possible threat of a third wave of COVID-19 and more lockdowns.
For the overall gold jewelry market, WGC said demand could be in the range of 1,600-1,800 tons for the year, which would be well above 2020 levels but below the five-year average.
It added that while another variant-driven COVID-19 wave would create challenges for the sector, it still believes that “a repeat of last year’s low jewelry demand levels [is] highly unlikely.”
More on Majors
The Latest
SourcingApr 18, 2024
Diamond Trade Remains Cautious Amid Economic UncertaintyDe Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Supplier BulletinApr 18, 2024
Discover History’s Hidden Gems at the Las Vegas Antique Jewelry & Watch ShowSponsored by the Las Vegas Antique Jewelry & Watch Show
WatchesApr 18, 2024
Watch E-tailer Collectability Hires Kelly YochThe Patek Philippe expert will serve as personal curator for the brand-focused company.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
WatchesApr 18, 2024
TAG Heuer Opens Its Largest Standalone Boutique at SeaThe 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
Weekly QuizApr 11, 2024
This Week’s QuizTest your jewelry news knowledge with this seven-question quiz.
Policies & IssuesApr 17, 2024
NDC Prevails in U.K. Case Over Lab-Grown Diamond AdvertisingNDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
Events & AwardsApr 17, 2024
And the 2024 Winner of the Shipley Award Is … John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
FinancialsApr 17, 2024
LVMH’s Q1 Jewelry Sales Fall 5%LVMH said the company performed well despite an uncertain geopolitical and economic environment.
CollectionsApr 16, 2024
Akaila Reid Launches ‘Eat Cake’ CollectionIt’s ultra-feminine and filled with gold, pearls, and soft pastels.
MajorsApr 16, 2024
Stuller Releases First Lab-Grown Diamond Jewelry CatalogIts updated book for mountings is also now available.
SourcingApr 16, 2024
Karen Rentmeesters Takes Over as Interim CEO of AWDCShe has been with the organization since 2010, most recently serving as its chief officer of PR and industry relations.
TechnologyApr 15, 2024
Judge Rules Jeweler’s Lawsuit Against PNC Bank Can Move ForwardJoyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.
IndependentsApr 15, 2024
Alfred W. DeScenza of DeScenza Diamonds Dies at 95He is remembered by loved ones for his loyalty, integrity, and kindness.
AuctionsApr 15, 2024
Madeleine K. Albright Jewelry, Pins Coming to AuctionHosted by Freeman’s | Hindman, the sale will take place May 7-8.
AuctionsApr 15, 2024
All of Sotheby’s ‘Rough Diamonds’ Sold in Less Than an HourThe auction house said all 24 timepieces offered in its underground sale of rare and avant-garde watches quickly found buyers.
Events & AwardsApr 15, 2024
10 Can’t-Miss Sessions at AGS Conclave 2024From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.
Recorded WebinarsApr 12, 2024
Watch: What Jewelers Need to Know About InsuranceFrom cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.
CollectionsApr 12, 2024
Piece of the Week: Lionheart’s Evil Eye Gemstone CharmThe charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.
Events & AwardsApr 12, 2024
The Jewelry Symposium Announces 4 Scholarship WinnersAhead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.
Policies & IssuesApr 11, 2024
SRK Exports’ Journey Toward Net Zero Impact By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.
Lab-GrownApr 11, 2024
AGTA Bans Lab-Grown Diamonds, Gemstones at GemFairMembers can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.
IndependentsApr 11, 2024
Steven Rosdal, Co-Founder of Hyde Park Jewelers, Dies at 77He is remembered for his charisma, passion, integrity, kindness, and wit.
MajorsApr 11, 2024
Macy’s Opens Books for Possible BuyoutThe retailer also appointed two new board members, avoiding a proxy fight from a potential buyer.
CollectionsApr 10, 2024
Sylvie Launches New Nature-Inspired Collection, ‘Tulira’The bridal collection consists of 35 engagement rings and seven wedding bands.
WatchesApr 10, 2024
These Are Rolex’s New Watches for 2024 The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
IndependentsApr 10, 2024
Levy's Fine Jewelry Explores Diamond History The family-owned jeweler has a new education section on its website dedicated to the history of diamond cutting.
