Global demand for gold jewelry falls to record low in 2020
- 28 January 2021
Global demand for gold jewelry fell last year to a record low since observation began in 1995, according to the World Gold Council (WGC) report "Gold Demand Dynamics" made available to TASS on Thursday, APA reports.
To blame is the coronavirus pandemic and high gold prices.
"The demand for gold jewelry in Q4 2020 fell 13% year-on-year to 515.9 tonnes. As a result, the total annual demand in this segment was 1.411 tonnes, 34% lower than in 2019 and is a new annual minimum in the history of our observations, "the report said. Despite recovering in Q4, the demand has been unable to overcome the ongoing difficulties associated with the COVID-19 pandemic. Much of the annual decline in global demand is attributable to falling sales in China and India, the gold council said.
The WGC predicts that jewelry demand will continue to be relatively low in the near future, but mass vaccinations and improved economic performance give hope for an improvement in the sector in 2021. In Russia, the demand for jewelry in 2020 fell by a quarter - to 33.3 tonnes, the report says. Overall consumer demand in Russia decreased by 20% from 48.1 tonnes in 2019 to 38.3 tonnes in 2020. Global demand for gold bars and coins increased by 10% in Q4 2020. The recovery in demand in China and India in H1 2020 supported demand in Western markets and increased the annual rate to 896.1 tonnes (+ 3%). The demand for bullion and coins in Russia in 2020 increased by 37% from 3.7 tonnes to 5 tonnes, the World Gold Council said.