Gold Jewelry Demand in U.S. Is Up

October 29, 2002

Gold Jewelry Demand in U.S. Is Up

Though worldwide gold jewelry demand was down in the second quarter of 2002 from last year, the World Gold Council reports U.S. gold jewelry demand grew a little over 1%, bucking the global trend. WGC says purchases were concentrated in lower-cost items with higher-priced items suffering from the generally slow demand for all luxury goods. The growth came despite consumers' worries about collapsing equity markets and geo-political tensions.

Total gold demand in the U.S. rose 2.8% in the second quarter over last year, with a 41% surge in investment demand. The rising gold price, along with concerns over corporate governance, the global political scenario and a still shaky economy underpinned interest in investment gold, says WGC.

Trade purchases showed somewhat stronger growth as retailers rebuilt stock. "As economic recovery becomes more firmly based, demand should improve, although growth in the next few months is expected to be modest," says WGC.

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