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Gold May 05, 2020 08:30:13 PM

WGC: World Gold Jewellery Demand Plunged to Record Low

Paul Ploumis
ScrapMonster Author
The other Asian markets too reported notable decline in demand.

WGC: World Gold Jewellery Demand Plunged to Record Low

SEATTLE (Scrap Monster):  The Q1 Gold Demand Trends Report published by the World Gold Council (WGC) denotes 39% dip in global gold jewellery demand in Q1 2020. The impacts caused by Covid-19 pandemic coupled with soaring gold prices led to the notable dip in demand.

The WGC observed that the jewellery demand posted 39% year-on-year decline to hit 325.8 tonnes during the initial quarter of 2020. The Q1 2019 demand had totalled 533.4 t. In value terms, the demand totalled $16.6 billion- the lowest level since Q2 2010.

The two largest markets- China and India reported 65% and 41% decline in demand respectively. The Chinese demand plummeted to 64t- the lowest level in more than 13 years. The demand in India, at 73.9t, plummeted to an eleven-year low, triggered by spiralling domestic gold prices, falling currency and slower economic growth projections.

The other Asian markets too reported notable decline in demand. The demand in Indonesia and Thailand fell by 55% and 45% respectively from the year-ago level. The Japanese demand decline was limited to 10%.  Meantime, Turkish jewellery consumption witnessed year-on-year decline by 10% to 8.6t. The demand in the Middle East edged lower by 9% to 42.9t.

The U.S. jewellery demand recorded first quarterly decline since Q4 2016 to 23.1t. Also, the jewellery demand in European region plunged to record lows of 10.8t, falling by 15% over 2019.

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