World Gold Council: Gold demand continues to grow in the first quarter, and new jewelry is sought after

"The global gold market is off to a solid start in 2022. Driven by the surge in inflows of gold ETFs, the total global gold demand (excluding OTC transactions) in the first quarter increased by 34% year-on-year, which once again demonstrates the advantages of gold as a safe-haven asset." Wang Lixin, CEO of the World Gold Council China, said at the analysis meeting of the "Global Gold Demand Trend Report" in the first quarter of 2022.

The global gold market is off to a solid start in 2022. Total gold demand in the first quarter reached 1,234 tons, the highest quarterly level since the fourth quarter of 2018. In March, the price of gold rose to $2,070 an ounce, approaching an all-time high. According to the latest "Global Gold Demand Trend Report" released by the World Gold Council recently, the total gold ETF holdings increased by 269 tons this quarter, the highest level since the third quarter of 2020, completely reversing the decline of 173 tons of net outflows in 2021. The rise in gold prices was also one of the important reasons for the inflow of gold ETFs this quarter.

Meanwhile, total global demand for gold bars and coins was 282 tons, 11% higher than the five-year average. Total global jewellery consumer demand fell 7% year-on-year to 474 tonnes, mainly due to weak demand in the quarter. Global central bank official gold reserves increased by 84 tons, and net gold purchases more than doubled month-on-month.

Total global gold supply increased by 4% year-on-year, driven by higher gold mine production (856 tonnes). In addition, the supply of recycled gold increased by 15% from the same period last year to 310 tons due to higher gold prices.

In this regard, Louise Street, senior analyst of the World Gold Council, said: "As a safe-haven asset, gold has a unique positioning for investors and retail consumers with dual attributes. Considering the current market dynamics, gold's investment needs Still expected to remain strong. But continued growth in jewellery demand is likely to be weighed down by a combination of higher living costs and a slowdown in the broader economy.”

Wang Lixin, CEO of the World Gold Council in China, also mentioned that in the first quarter, the total demand for gold jewelry in China reached 177.5 tons, down 8% year-on-year, but only 6 tons lower than the 10-year average quarterly level. Gold jewelry demand showed a certain degree of resilience and remained relatively stable. This was mainly attributable to the promotions during the Spring Festival and other holidays, the further increase in the market share of ancient gold, and the adoption of the "price by gram" method and the vigorous promotion of heavy and heavy gold jewelry by retailers, which resulted in a year-on-year increase in the retail sales of gold jewelry in the first two months. Substantial Increase.

In recent years, consumers' enthusiasm for Guochao jewelry, IP products and other products has driven the sales of high value-added products such as ancient gold and high-tech products to accelerate. At the same time, the increase in the demand for "pleasure oneself" has further extended the consumption scenarios of high-margin diamond products from wedding needs to daily wear needs, and the age group of consumers has further expanded and has a younger trend.

In this regard, Wang Lixin, CEO of World Gold Council China, in an interview with a reporter from Global Network Financial Consumer Information, explained the advantages of consumers' purchasing preferences for 3D hard gold, 5G gold, 18K gold, ancient gold and other new jewelry.

Wang Lixin said that, first of all, three types of new jewelry are sought after: pure gold jewelry, in the traditional sense, pure gold jewelry still accounts for the largest proportion, more than 30%; the second category is 3D hard gold, which is slightly lightweight pure gold jewelry , this part accounts for about 20%; the third category of new national trends, represented by ancient gold, incorporates a lot of cultural appeal elements, followed by 18K gold and K gold jewelry. However, 22K accounts for very little in the Chinese market and can basically be ignored. The biggest advantage of pure gold jewelry is that it has high purity and pure gold raw materials, so when you buy it back after purchase, the loss is relatively small. In addition, pure gold jewelry can be made into many styles because its hardness is not so high, and the style changes are relatively rich. But on the contrary, if its hardness is not high, some design styles and its durability may be affected and easily deformed.

Secondly, hard gold can be lightweight. For example, 3D hard gold or 5G hard gold can be made into large pieces, but not so many materials are used, so that consumers can buy products with relatively large displays within the cost of purchasing. In the future, with the introduction of new varieties of hard gold into the market, it will be more attractive to consumers of the younger generation who are pursuing fashion.

Again, ancient law gold. Relatively speaking, the weight is relatively large, and it has a strong sense of culture, which can add a lot of cultural value. The ancient method of gold has "no limit on tide wear", suitable for wearing in different scenarios, suitable for long-term preservation, or even inheritance. It is believed that with the gradual enrichment of products in the gold market, it will attract more consumers of the younger generation such as those born in the 1980s, 1990s and 2000s, which will become the support point of confidence in the gold jewelry market.

Article source: World Wide Web