U.S. Sees First Increase in Gold Jewelry Demand in 7 Years

Gold jewelry making a comeback.

Gold jewelry demand in the U.S. for the first quarter of 2013 grew by more than 5% year-over-year to reach a value of $986 million. This is the first increase in demand since the third quarter of 2005, the World Gold Council said Thursday.

The lower-end of the U.S. jewelry market rebounded considerably, the WGC in its quarterly Gold Demand Trends report, adding that it’s “a further positive sign of recovery in the U.S. economy, coinciding with a correction in the gold price over the course of the quarter.”

Meanwhile, the amount of gold used for the fabrication of jewelry worldwide increased by 12% year-over-year to 551 metric tons for the first quarter of 2013, worth a record value of $28.9 billion, according to the report.

The dramatic decline in the value of gold has led to an increase in demand, the WGC said in the report. However, that demand is largely limited to India and China, who continue to distance themselves from the rest of the world in their passion for gold jewelry. The two countries combined now account for 62% of gold jewelry demand, according to the report. The U.S. for the first time in more seven years saw a year-over-year increase in gold jewelry demand.

Other highlights of the report include:

* Gold jewelry demand surged by 19% in China to a record level, led by Chinese New Year gifting in January and a rebound in consumer sentiment, WGC said. This is despite new in leadership in China calling for less conspicuous consumption. Demand saw the largest increase in 24k gold jewelry, although demand for 18k gold jewelry also increased.

* In India, year-over-year demand grew by 15% and came just short of beating the fourth quarter 2012 record. However, that gain was compared a very soft first quarter of 2012.

* Meanwhile, gold jewelry demand in Italy and the U.K. fell dramatically, 12% and 7%, respectively, as difficult economic continues continue to lead consumers to purchase lower-karat gold and silver jewelry.

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Fabergé Invades London with an Egg for the Queen and an Easter Egg Hunt

The Fabergé Diamond Jubilee Egg.

Luxury jewelry house, Fabergé, has unveiled a custom bejeweled egg honoring Queen Elizabeth II’s Diamond Jubilee in London Tuesday as residents scoured the city streets to begin a 40-day hunt for elaborately decorated Easter eggs in a charity benefit.

Crafted with precisely 500 grams of rose gold, the design of the one-of-a-kind Diamond Jubilee Egg is topped with 60 gemstones—one for each year of the Queen’s reign—set in the pleats of its quilted rose gold surface and comprising diamonds, emeralds, rubies and sapphires. Actress Emilia Fox displayed the egg during the unveiling outside the recently opened Fabergé London boutique.

Actress Emilia Fox with the Fabergé Diamond Jubilee Egg.

The Diamond Jubilee Egg is valued at $157,850 and is the top prize in the The Fabergé Big Egg Hunt. It will be on display at the Fabergé boutique from February 21 until April 1, and then at Harrods in Knightsbridge from April 2 -8.

More than 200 eggs, each around 2 ½ foot in height and designed and decorated by designers and artists have been “hidden” around central London as residents try to find the eggs. Each egg holds a unique code which, when texted to the number provided via SMS, provides an entry to win the Diamond Jubilee Egg. Each additional code submitted provides an additional entry, increasing the chances of winning the Diamond Jubilee Egg. Charges apply to each text message, with the proceeds going to the two charities: Action For Children and The Elephant Family. Fabergé seeks to raise one million pounds for each charity

The creative talent decorating the eggs represents many disciplines—including architects product designers, fashion houses, jewelry designers and artists. They include Marc Quinn, Chapman Brothers, Sir Peter Blake, Zaha Hadid, Nicky Haslam, Candy & Candy, Gordon Murray, Bruce Oldfield, Robinson Pelham, Sir Ridley Scott, Diane von Furstenberg and Mulberry.

Each of these works of art will be sold by auction to raise funds for the charities. See www.thebigegghunt.co.uk for more information.