Page 23 - Bullion World Volume 02 Issue 11 November 2022_Neat

Bullion World | Volume 2 | Issue 11 | November 2022
World Gold Council - Gold Jewellery

Demand Trends Q3 2022

Continued normalisation of the market to pre-
COVID levels of activity and build-up in inventories

as growth in fabrication exceeded that of
consumption.

Global gold jewellery consumption Global gold jewellery consumption of China
recovered to pre-COVID levels 523t improved 10% y-o-y in Q3, and After the disruption of China’s
• Q3 demand benefitted from a was up 14% compared with the prior widespread Q2 lockdowns,
pullback in the gold price quarter. Demand was also healthy gold jewellery demand staged a
• India led the recovery with 17% on a longer-term comparison. comeback in Q3, rallying 58% q-o-q
y-o-y growth in demand to 146t exceeding its five-year quarterly to 163t. The y-o-y comparison
– the strongest third quarter average (501t). Y-t-d demand shows a more modest 5% increase.
since 2018 reached 1,454t, a 2% improvement Despite sporadic restrictions being
• Demand in China saw more on the same period in 2021. imposed throughout the quarter,
muted growth, up 5% y-o-y consumer sentiment in July and
as sporadic COVID-related This signals a continued August was upbeat, aided by a
restrictions impaired consumer normalisation of the market to pre- pullback in the local gold price and
sentiment. COVID levels of activity, aided by a the release of pent-up demand from

Tonnes Q3'21 Q3'22 YoY % pullback in the gold price in many Q2. .
change markets during the quarter. Q3 also
World total 476.5 523.1 10 saw a further build-up in inventories Jewellery consumers were driven by
India 125.1 146.2 17
as growth in fabrication exceeded investment motives more than usual,
China, 156.0 163.4 5
P.R.:Mainland that of consumption. given the uncertain environment
of continued sudden lockdowns,
Source: Metals Focus, slowing economic growth and
World Gold Council a weaker domestic currency.

This boosted sales of plain 24K
products, which are increasingly
priced according to weight rather
than per piece (yielding lower, and
more transparent, labour charges).
Consequently, retailers continued
to focus their promotional efforts
on heavier items in order to bolster
profits.

Q3 saw continued growth in demand
for heritage gold jewellery products,
Sources: Metals Focus, World Gold Council; which gained further market share.
*Data to 30 September 2022.

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