National Jeweler has the full report of the World Gold Council‘s latest findings, but the gist is this: demand for gold jewelry in the United States continues on its decade long decline, but it’s “moderating.” Despite this dismal 10-year slide, the WGC does emphasize that last year’s 9% decrease in the 4th quarter was the smallest since 2005.
Beyond that small silver lining, it’s pretty apparent that gold jewelry is not a priority for the vast majority of Americans. With an extremely volatile market (especially when it comes to last year’s gold prices), a depressed housing market, and loads of credit card and student debt – not to mention high unemployment – the U.S. simply is not buying gold jewelry like it used to.
Beyond the aforementioned, largest factors in the decline, another reason why gold hasn’t been performing as well may have to do with jewelers’ increasingly popular alternative metals. Silver, platinum and more unconventional precious metals are more readily available, often more affordable (or, in platinum’s case, only marginally more expensive) than the sky high gold prices of 2011.
However, the study does emphasize that this downward spiral does seem to be leveling off, and according to NJ:
“Globally, the report shows that jewelry demand for gold fell 3 percent year-over-year to 1,962.9 tons. Fourth quarter demand was 476.5 tons, down 15 percent from the fourth quarter 2010. The value measure of gold, however, hit record highs for both full year and fourth quarter, at $99.2 billion and $25.9 billion, respectively.”
Gold is still performing well (though not at the levels it was in September) with today’s Kitco price of gold hovering around $1750 per Troy ounce. To read National Jeweler’s coverage, as well as the World Gold Council’s full report, click here.
Liz for Raymond Lee Jewelers, Boca Raton‘s most reputable source for buying and selling gold.