DESPITE the full-year decline in gold jewellery demand in 2015, demand in the second-half year increased by two percent to 1,299.9 tonnes from 1,271.5 tonnes in H2 2014, making it the highest H2 total in 11 years since 2004, according to Gold Demand Trends Full Year 2015 published by the World Gold Council (WGC) in February 2016.
Annual demand in 2015 dropped by three percent to 2,414.9 tonnes from 2,480.8 tonnes in 2014. The significant declines in Turkey, the Middle Eastern markets and Russia in 2015 were resulted from economic and socio-political factors, WGC analysed.
India, however, was at the forefront of positive areas, said the report. “Jewellery demand in India rebounded in the second half of the year, having suffered in the second quarter. Annual demand reached 654.3 tonnes, registering an increase of five percent, the highest since 2010 and the third highest year on record.” Price-sensitive consumers took the opportunity to buy gold jewellery amidst the drop in gold prices right before Dhanteras, the first day of the five-day Diwali festival, which marks the start of the wedding seasons, added the report.
China’s gold jewellery demand in Q4 2015 was down by a mere one percent or 2.8 tonnes at 202.6 tonnes despite global worries over the country’s economic wellbeing. The annual decline was slightly larger, from 807.2 tonnes of 2014 to 783.5 tonnes, a three-percent drop year-on-year.
In other Asian markets, according to the report, the growth in Japan, Vietnam, Indonesia and South Korea was outshone by the combined losses in Thailand, Malaysia, Taiwan and Hong Kong.
In Vietnam gold jewellery demand in Q4 and the whole 2015 increased by 31 percent yoy to 3.9 tonnes and 25 percent to 15.6 tonnes respectively. “[Hong Kong] is among the weakest performers of both Q4 and 2015 as a whole. It suffered as a result of its heavy dependence on mainland Chinese tourists. Shrinking numbers of such visitors sparked a collapse in gold jewellery demand, which fell 23 percent to 13.6 tonnes in Q4,” said the report.
Although demand in the United States improved modestly especially in Q4, the outlook for 2016 is cautious, WGC predicts. In Q4 2015 demand for gold jewellery went up by three percent to 45.6 tonnes, which contributed to the same-percentage annual growth. Due to the fact that there has been a shift towards spending on travel and leisure rather than retail goods, the report said: “There is little call for enthusiastic optimism in the outlook for 2016.” (Photo courtesy: WGC)
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