According to the World Gold Council (WGC), the global demand for gold jewellery decreased by 9 per cent year on year totaling $23.53 billion in the first quarter of 2015.
A quarterly demand trends report from WGC showed that gold jewellery demand dropped by 3 per cent by volume totaling 600.8 tonnes.
When it comes to the global demand for gold, which accounts for jewellery, investment, technology and central bank orders, the numbers dropped by 7 per cent to $42.28 billion and the demand by volume decreased by 1 per cent to 1,079.3 tonnes.
In India, gold jewellery demand increased by 22 per cent to 150.8 tonnes, which in turn set of declines in China, says the WGC. In China, gold jewellery demand by volume dropped 10 per cent to 213.2 tonnes as a result of slowing economic growth, volatile stock markets as investors chose equities over physical assets, and a careful outlook for gold prices.
The WGC report also showed that 18k gold continues to gain market share as it becomes more popular with the younger generations.
In general, consumers continue to be cautious about spending and more selective when it comes to design and quality. CJ