Win $5,000 in Gold Wedding Ring Hunt on Times Square

Photo credit: World Gold Council

“Miranda Brownvile” lost her gold wedding band on Times Square and is recruiting help in finding it by offering $5,000 for the person who does locate the ring.

The ring hunt is actually a Twitter-based promotion put on by the World Gold Council. The contest kicks off on Dec. 26 with the debut in Times Square of a 15-second video billboard featuring Miranda Brownvile at 1500 Broadway, above ABC headquarters. The video will run until Jan. 1, during which time followers of Brownvile’s Twitter feed will receive clues about the location of her lost gold ring. The first person to correctly identify where the lost ring is located wins not only the cash prize but a two-day (one night) trip to New York.

For clues in finding the ring follow Brownvile through Twitter at @LostGoldRing and the World Gold Council on Facebook (Facebook.com/gold).

5% Increase in Q3 Gold Jewelry Demand

Gold jewelry demand for the third quarter of 2013 increased 5 percent year-over-year to 486.7 tons, the World Gold Council said Thursday, marking the best third quarter performance for the precious metal since 2010. 

In terms of value, gold being used for jewelry for the period fell by 15 percent year-over-year, due to a drop in the trading price of the precious metal, according to the WGC’s Gold Demand Trends report for the third quarter of 2013. Demand for the period was worth $20.8 billion, the lowest quarterly value since the third quarter of 2010.

Global growth for the period was led by high-karat gold jewelry purchases in Asia, the Middle East and the US, 

“An almost universal phenomenon in the third quarter was the increasing popularity of higher carat jewelry,” the WGC said in its report. “Across Asia, the Middle East and in the US, higher carat jewelry was noted as an area of particular growth as the increased investment properties associated with gold of higher purity came to the fore. The fact that jewelry retailers in a number of markets were increasingly stocking investment products (small bars and coins) provided further evidence of the greater blurring of the jewelry/investment distinction.”

Consumers in China generated 163.7 tons of jewelry demand in the third quarter, making it by far the largest single jewelry market. The country’s year-to-date, demand of 518 tons already equals the same amount for the full-year 2012.

“To some extent, exhaustion set in towards the end of Q3 after such a frenetic second quarter, but continued expansion of the retail network confirms that the trade sees prospects for growth,” the WGC said.

Increases were reported in 24k jewelry (known as “chuk kam”), which has a purity rating of 95.95 percent and in “four nines” gold (gold jewelry of 99.99% purity, compared with the typical 24-carat purity of 99.95%). The WGC explained that the former is unique to China and is most popular with consumers in lower tier markets and rural areas as an investment hedge.

Mainland Chinese consumers also attributed to a 28 percent increase in gold jewelry consumption in Hong Kong to 7.5 tons.

In the US, the WGC noted that “demand was a key development.” Gold jewelry demand for the third quarter rose 14 percent year-over-year to 43.4 million tons.

With the exception of fourth quarter demand (driven by holiday sales), the third quarter was the first quarter in four years in which gross jewelry demand exceeded recycling—creating net positive jewelry demand,” the WGC said. “Since Q3 2009, gross new quarterly jewelry demand had been exceeded by the recycling of old gold jewelry as distress selling took off during the economic downturn,” WGC said. “Increasingly positive sentiment among US consumers during the third quarter reversed this trend.”

The report also notes a shift towards 18k jewelry from 14k.

“Given recent developments in the US, consumer sentiment has taken a hit early in the fourth quarter, but the seasonal impact, together with prices holding below US$1,400/oz, suggests a certain amount of resilience,” the WGC said.

India, one of the world’s largest markets for gold jewelry, saw demand drop by 23 percent year-over-year to 104.7 tons due to import restrictions imposed by the government. “Demand for gold jewelry among Indian consumers remains strong, but reduced supply has prevented this demand from being fully realized,” the WGC said.

"The smaller Asian markets had robust growth for the period, with the exception of South Korea where weak consumer sentiment and a sluggish domestic economy dampened demand," the WGC said. "Across the rest of the region, there was a trend for higher karat jewelry pieces of relatively simple design as consumers across the region took advantage of gold’s increased affordability."

Gold jewelry demand in the Middle East increased 9 percent to 51.2 million tons, due to lower prices across the region, the WGC said. The “unsurprising” exception was Egypt.

“The emphasis on 22-karat gold at the expense of 21- and 18-carat diamond-set jewelry suggests demand was stronger among domestic consumers relative to western tourists.”

The third quarter in Turkey, which is traditionally strong, saw year-over-year demand increase 14 percent. In value terms, demand was virtually flat, due to a 12 percent decline in the local currency price of the precious metal.

Russia’s growing middle class, armed with greater disposable income, helped generate a 7 percent year-over-year growth in jewelry demand.

“European markets were again the exceptions to the more positive global picture, with both UK (-14%) and Italy (-7%) posting year-over-year declines due to “economic concerns,” WGC said.

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Website.

Q3 Global Gold Jewelry Demand Down 4%, US Demand Up 4%; India Demand Surges 60%

Global gold jewelry demand fell 4 percent year-over-year to 534.2 tons for the third quarter of 2014, according to the World Gold Council in its Gold Demand trend report released Thursday. However, the decline comes against an unusually robust third quarter of 2013, which experienced the strongest growth for jewelry demand since 2008. 

“Longer term analysis shows a market in good health. Q3 demand was marginally stronger than the five-year quarterly average of 527.6 tons, while year-to-date volumes continue to extend the broad uptrend from the low seen in 2009,” the WGC said in its report.

Two markets did shine, the US, with a 4 percent rise that helped lift manufacturing outputs in several gold jewelry producing countries; and India, which surged 60 percent. China and Hong Kong, meanwhile, experienced steep declines in gold jewelry demand. 

US ‘Revival’
The WGC’s report said the economic recovery and a downward trend in the price of gold created a “revival” of gold jewelry demand in the US that has had a “ripple effect” around the world.

“The US sucked in greater volumes of gold jewelry imports from markets as diverse as India, China, Italy, Mexico and Oman, according to the report. “Third quarter growth in the US market was very much an extension of the trend that has prevailed since early last year. Mounting conviction in the economic recovery has boosted sentiment and whetted consumers’ appetite for discretionary purchases. Gold jewelry has been a clear beneficiary: improving sales of higher carat and non-wedding related items helped demand to the highest Q3 total since 2009.”

The report added, “Lower gold prices have aided the recovery of US demand as retailers are more easily able to meet key price points without crimping margins. Or, similarly, to increase karatage while maintaining price levels. This has enticed some mass- market retailers back into the gold jewelry sector.”

India
The market that had the strongest third quarter by far was India, which reported a 60 percent year-over-year increase to nearly 183 tons—the second highest third quarter on record, the WGC said. 

“The third quarter of 2013 was decidedly weak as the introduction of complicated new measures to restrict gold imports and the subsequent sharp rise in local prices knocked demand,” the WGC said in its report. “But this quarter, other more positive forces were also at play.”

Among those forces is the confidence in the new Indian government led by Prime Minister Narendra Modi, a drop in the price of gold and robust buying during the Diwali festival season. 

“Although Indian consumers are typically wary of buying gold while the price is still moving, preferring to wait until it settles at a more stable level, the opportunity to buy at cheaper prices proved, for some, hard to resist.”

China
Meanwhile, China experienced a 39 percent year-over-year decline to 147.1 tons in gold jewelry demand. Hong Kong (where consumers from the mainland China account for most of the demand) fell 31 percent to 9 tons. The WGC said much of this decline is in comparison to the rapid expansion throughout 2013 and that gold jewelry sales are normalizing.

“18-karat (K-gold) jewelry was relatively more robust than the 24-karat (chuk kam) segment,” the WGC said. “The government’s anti-corruption drive may have contributed to this trend.”

Other Markets:
* Indonesia saw third quarter demand fall 16 percent to 9.7 tons partially in response to strength of demand last year. However, the WGC said “equally important was the Presidential election in July, which created a degree of political instability and discouraged spending on gold jewelry.” 

* Third quarter jewelry demand in Turkey fell 18 percent, year-over-year, to 19.2 tons—the lowest third quarter on record, the WGC said. “Consumers were unnerved by domestic political turmoil; worrying economic signals; and escalating Syrian violence in close proximity to the Turkish border. The ban on paying for gold jewelry by credit card installments continued to hang over the market, although this restriction was partially repealed in October.”

* Demand in the Middle East fell 14 percent year-over-year to 36 tons. Demand for gold jewelry across the region suffered from the comparison with strong demand last year, the WGC said, leading to a trend towards lower-karat and gem-set jewelry.

* Jewelry demand in the UK increased 18 percent to 4.6 tons, the fifth consecutive year-over-year rise.

* Gold jewelry demand in Russia edged up 1 percent year-over-year to 18.6 tons, despite a rise in the average domestic gold price due to a weaker rouble, the WGC said. 

* Demand in Italy fell 4 percent year-over-year to 2.7 tons. 

The Gold Demand Trends report also tracks gold for investment and technology purposes. In the third quarter overall demand was “subdued,’ the WGC said, falling by 2 percent to 929.3 tons. The price was relatively stable for the period. 

“Quarterly volatility in the US$ gold price was among the lowest levels seen over the past two decades,” WGC said. “This was both a cause and effect of the benign demand environment. Investor behavior in particular contributed to this circularity: the lack of a clear price signal caused investors to hold back from buying gold, which in turn dampened down price moves.”

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes website.

Global Gold Jewelry Demand Down 5%

The cost and demand of gold as an investment vehicle has resulted in a slight drop in its use for jewelry manufacturing in the second quarter, according to the World Gold Council. However, the organization said the decline is subsiding in its key Asian markets.

“Over the past quarter, demand for gold jewelry in key Asian markets has been challenged by rising local prices,” said Marcus Grubb, WBC managing director, Investment. “Nevertheless, we are seeing a deceleration in the pace of decline in demand, providing a strong outlook for ongoing recovery in this crucial market segment.”

In the face of surging price levels, global jewelry consumption totaled 408.7 tons during the second quarter of 2010, 5 percent below year-earlier levels, the WGC said in its Gold Demand Trends report for the second quarter of 2010.

Gold jewelry demand in India, the largest jewelry market, was down just 2 percent at 123 tons. In local currency terms, this translates to a 20% increase in the value of demand, WGC said. Meanwhile, China saw demand for gold jewelry increase by 5 percent to 75.4 tons. While growth in demand in tonnage terms was hindered by extreme weather conditions, the growth in the local currency value measure of demand was 35 percent.

The WGC did not include figures for the U.S. jewelry demand in its release of the report for the media.

Total gold demand for the second quarter rose by 36 percent to 1,050 tons, largely reflecting strong gold investment demand compared to the second quarter of 2009, the WGC reports. In US value terms, demand increased 77 percent to $40.4 billion.

Investment demand was the strongest performing segment during the second quarter, posting a rise of 118 percent to 534.4 tons, compared with 245.4 tons in the second quarter of 2009. The largest contribution to this rise came from the ETF segment of investment demand, which grew by 414 percent to 291.3 tons, the second highest quarter on record. Physical gold bar demand, which largely covers the non-western markets, rose 29 percent for the period to 96.3 tons.

“While many investors turned to gold as a ‘flight to quality’ in response to the uncertain financial environment, this interest has proved resilient even though a sense of optimism has started to return to some sectors of the investment community,” Grubb said. “In addition to the ETF market and physical bar and coin market, the demand for gold through internet based investment platforms is likely to provide further sources of investment demand.”

The WGC said demand for gold will remain robust during 2010 as a result of accelerating demand from India and China, as well as increasing global investment demand driven by continuing uncertainty over public debt and economic recovery.

“Economic uncertainties and the ongoing search for less volatile and more diversified assets such as gold will underpin investment demand for gold in the immediate future,” Grubb said. “Further, in light of lingering concerns over public debt levels and the euro, European retail investor demand has increased significantly.”

U.S. Gold Jewelry Demand Down 8%; Global Jewelry Demand Up 6%; India Accounts for 32% of Demand

Gold jewelry demand in the U.S. fell 8 percent, year-over-year, to 21.7 metric tons for the second quarter of 2011, the World Gold Council said Thursday. However, in value terms, demand strengthened by 15 percent to $1.1 billion, which mostly reflects a 26 percent increase in the price of gold during the period.

“The combination of high unemployment, frail economic growth and stubborn inflation pressures produced an environment that was not favorable for gold jewelry demand,” the WGC said in its Gold Demand Trends report for the second quarter of 2011. “The quarter was characterized by continued thrifting among retailers among retailers in order to meet affordable price points and 10k items were encroaching 14k market share.”

The report went on to note that gold jewelry was facing “stiff competition” from silver, and specifically cited jewelry maker, Pandora, which specializes in silver charms. However, this company has lost some of its luster in recent weeks.

Overall global gold jewelry demand rose by 6 percent, year-over-year, to 442.5 tons, equivalent to $21.4 billion in value—led by India, which accounted for 32 percent of global jewelry demand, WGC said.

Gold jewelry demand in India rose 17 percent in the second quarter, compared with a relatively weak year-earlier period. In value, the rise was 42 percent for the period. The WGC noted that the Akshaya Tritya festival in May (traditionally a key gold jewelry buying occasion on the Hindu calendar) “stimulated a surge of buying.”

In China, jewelry demand in the second quarter, normally a quiet period, rose 16 percent, year-over-year, to 102.9 tons, WGC said. The local currency value of demand increased 40 percent, year-over-year, for the period. Demand for 24k and 18k gold in China represents gold's attraction as both an investment and as a reflection of the demand for better-quality jewelry.

“Increasing prosperity among Chinese consumers, supported by very strong growth in the domestic economy, is still a driving force behind gold jewelry demand,” the WGC said.

Among the European markets, Russia was the only country to experience limited growth for the second quarter, WGC said. Demand was “marginally higher” at 16.9 tons, which translated to growth in value of 27 percent. However, the WGC said that year-to-date imports have grown considerably in Russia as its economy improves.

The second quarter was weak for both Italy and the United Kingdom, with demand falling by 15 percent and 16 percent, respectively. In value, demand fell by 6 percent in Italy and 4 percent in the U.K. The report cites rising gold prices and continued economic weakness as the culprits.

Demand in Turkey was “unexpectedly” robust during the second quarter, up 7 percent to 17.4 tons, equivalent to 38 percent growth in value. Consumers purchased 22k gold jewelry during period of the quarter when gold prices dropped several times in May and June.

Among other Asian markets, gold jewelry demand fell 9 percent to 1.9 tons in Taiwan due to the rising price of the precious metal. However, gold demand for wedding sets grew 10 percent for the period.

In Japan, gold jewelry demand dropped 14 percent to 4.2 tons as consumers are still suffering from the March earthquake and tsunami, WGC said. In value terms, the decline was a more modest 4 percent. The WGC noted some “encouraging” signs in the Japanese market with increased demand for “very-high-end” jewelry and in gold chains, purchased more for investment purposes than adornment.

In the remaining markets in the Southeast region, gold jewelry fell due to its high price. Thailand, Indonesia and Korea reported year-over-year declines of 5 percent, 3 percent and 2 percent, respectively. In value terms, demand grew between 19 percent and 23 percent.

An exception for the region was Vietnam, where demand grew by 6 percent, year-over-year, to 3.3 tons, WGC said. This increase was concentrated in “chi” rings (plain 24k rings).

Middle East markets experienced weak second quarters. In Saudi Arabia, jewelry demand fell 16 percent to 21 tons, the largest drop in the region. Demand fell in Egypt by 8 percent to 8.3 tons. Demand from the other Gulf countries fell 4 percent to 4.9 tons. The most resilient market was the United Arab Emirates, I which demand fell by 1 percent to 16.1 tons.

Global gold demand for the second quarter of 2011 fell 17 percent year-over-year to 919.8 metric tons, according to the WGC Trends report. However, the value of the precious metal grew 5 percent to $44.5 billion—the second highest quarterly value on record due to the 26 percent increase in the price of gold during the period. Read more about the overall gold trends on my Forbes.com blog.

Global Gold Jewelry demand Fell 30% While Sales in the US and UK Improve

Yellow and white gold bracelets by Italian jewelry brand, Antonini. There was increase in Italian gold jewelry exports for the second quarter of 2014. 

Plummeting gold jewelry sales in India and China led to a 30 percent year-over-year drop in gold jewelry demand for the second quarter of 2014, the World Gold Council said Thursday. The loss was slightly offset by increases in consumer demand in the US and UK. 

Gold jewelry demand fell to 509.6 tons in the second quarter of 2014 compared with 726.7 tons in the same period of 2012, the WGC said in its quarterly report, “Gold Demand Trends.” Officials for the gold industry market development organization said the decline was expected due to the strength of 2013 demand and a natural annual weak period for such demand. In addition, the organization (which also tracks gold demand in investment, among central banks and for technology uses) notes that jewelry demand historically has accounted for more than half of global gold demand and the second quarter of 2014 was no different at 53 percent. 

“In what is traditionally a quiet quarter for gold jewelry demand, Q2 2014, was unsurprisingly lower,” said Marcus Grubb, WGC managing director of Investment Strategy, said in a video addressing the report. “However, jewelry has been extending its broad upward trend from the base established in the depths of the financial crisis in early 2009.”

Nearly all Asian and Middle-Eastern countries experienced double digit declines in demand, while western markets either remained flat or fared better, according to the report. The exception is Italy, where consumer demand was down 8 percent. However, the country, known as a gold jewelry manufacturing hub, saw gold jewelry exports improve due to increased demand in the US and other key markets.

This decline in gold jewelry demand helped to influence a 16 percent drop in overall gold demand (investment, central banks and technology) to 963.8 tons, which the WGC described as “not surprising … given the stark contrast in conditions in the global gold market between the two time periods.” 

Grubb added, “Global gold market continues to recalibrate in 2014 following an exceptional 2013 for gold buying.” 

By country, China was the market most affected by the comparison with the second quarter of 2013, WGC said. Gold jewelry demand fell 45 percent to 143.4 tons. Hong Kong also experienced a similar decline (52 percent to 9.1 tons) due to a drop in mainland China consumers.

“The second quarter began as the first had ended, with consumers adopting a more cautious, considered and ‘occasion driven’ approach to gold jewelry buying,” according to the report. 

Grubb added, “Price sensitive consumers … held back from purchasing more due to uncertainty around the future direction of the gold price and the fact that purchases have been made in 2013 instead.” 

In India, jewelry demand fell by 18 percent to 154.5 tons. The WGC said holiday and wedding purchases remained steady but the drop was primarily because of the recent general election that culminated in the victory of Narendra Damodardas Modi who took office as India’s 15th prime minister in May. High value purchases were restricted by the previous government in the run up to the election, the WGC explained. Now consumers are waiting to see whether Modi will remove those restrictions.

“Consumers held back from buying on the expectation that restrictions on gold would be relaxed by the new government,” Grubb said. “No substantial changes have been made by the Indian government to date.”

In the Middle East gold demand saw a 25 percent decline to 47 tons. The WGC says the escalation of violence in Iraq had a “deleterious impact” on demand across the region. In addition, demand slowed ahead of Ramadan. “Nevertheless, the region as a whole remains relatively healthy, particularly as non-resident Indians provide a steady source of demand for the 22k segment.” 

While the east and Middle East markets are in decline, western markets are continuing to rebound from the 2008-09 recession, with the most notable increases in the US and UK. 

Gold jewelry demand in the US for the second quarter increased 15 percent to 26.1 tons as the country is taking in more imports from India, China and Italy. It was the country’s fifth consecutive quarter of year-over-year growth. In the UK, demand increased 21 percent to 3.6 tons. 

Gold jewelry demand in other key markets is as follows:

* In Turkey, demand fell 20 percent year-over-year due to a clampdown on credit card purchases and ongoing political turmoil, WGC said. The lower end market took the brunt of the decline while larger, more established brands were “relatively resilient.” 

* Thailand experienced a 60 percent decline in demand due to recent political instability and high comparisons to the second quarter of 2013, the WGC said.

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes website.

Gold Jewelry Is Back as Global Demand Surges to 5-Year High

18k Picasso Gold brooch, Tiffany & Co.

Demand for gold jewelry in the second quarter surged to its highest level in five years due to a sharp drop in the price of the precious metal, the World Gold Council said Thursday.

Gold jewelry demand by volume increased 37 percent to 575.5 tons, according to the WGC’s Gold Demand Trend report for the second quarter of 2013. The demand for gold was so great that it far outweighed a decline in the average gold price as the demand in terms of value rose 20 percent to nearly $26.2 billion, the fourth highest on record.

The price of gold for the second quarter fell by more than $400 an ounce or 12 percent, according to the WGC, the marketing development organization for the gold industry.

“Although jewelry demand is influenced by a wide set of factors, including economic growth, consumer sentiment and disposable income, to name a few, all were eclipsed by the effect of the drop in the gold price,” the WGC said in its report.

The upward trend was “almost universal,” the WGC said, with the most notable year-over-year improvements in India, China, the Middle East and smaller Asian countries. Demand included an increase of higher-carat jewelry. Europe was the only region where jewelry demand failed to rise.

The US reported its second consecutive quarter of growth. Demand remained the healthiest at the higher end of the market, however, the WGC noted that the middle market is beginning to shift from lower- to higher-carat gold. The WGC also said the lower prices provided an opportunity for wholesalers to stock early for the Christmas holiday season.

India and China, again, generated the largest volume increase—almost 120 tons of the 155-ton increase in demand was from these two countries, according to the report. Hong Kong generated the strongest percentage growth in demand (approximately 65%), surging to a record 12.1 tons. In fact, double-digit growth was commonplace throughout the Asian markets, with the exception of Japan, which was unchanged. In Indonesia, demand of 7.8 tons was the strongest second quarter since Q2 2009.

In Turkey, a gold jewelry manufacturing center, demand hit a record high in terms of local currency value, led by consumer bargain hunting (concentrated in 22k market for investment) and trade inventory building. Growth across the Middle Eastern region was almost purely price-related, the WGC said.

The improvement in the US market was not replicated in the western European market, “where negative economic conditions overwhelmed the positive impact of lower prices,” the WGC said. In Italy, another major jewelry manufacturing center, demand fell by nearly 10 percent and in the UK demand dropped by more than 20 percent.

Jewelry demand in Russia “continued to normalize towards pre-crisis levels,” the report states, with demand concentrated on the high and low ends of the market.

The Gold Demand Trends report also tracks demand in gold for investment and technology purposes. In the second quarter, overall gold demand fell by 12 percent to 856.3 tons due to the drastic drop in the price of the precious metal. This translated to a 23 percent drop in value to $39 billion—its lowest level in more than five years.

“Record quarterly investment in gold bars and coins was countered by sizeable outflows from ETFs as western investors reacted to a seemingly more positive outlook for the US economy and an eventual tapering of quantitative easing,” the WGC said.

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Web site.

The Gold Medal Personifies the Spirit of the Olympics

The two sides of the 2012 London Gold Medal. Photo credit: The official London 2012 website

As the London 2012 Summer Olympics officially begins, this may be the appropriate time to view the symbolic, historical and monetary value of the ultimate prize in the greatest sporting endeavor on the planet.

More than 10,000 athletes will spend nearly three weeks (some games already began) competing for the chance to receive at least one of 302 Olympic Gold Medals. But what are they actually receiving and how did the gold medal become the top prize in the Olympics?

The “podium value” of the London gold medal is worth approximately $708, according to the World Gold Council. It is the highest value of any gold medal in the history of modern games, primarily because of the record high prices of gold and silver.

Each gold medal is made up of 92.5 percent silver and 1.34 percent gold, with the remainder copper. The International Olympic Committee stipulates that each gold medal must have six grams of gold (as well as 92.5 percent silver).

The silver medal (which represents second place) is made up of 92.5 percent silver, with the remainder copper; and the bronze medal (for third place) is made up of 97 percent copper, 2.5 percent zinc and 0.5 percent tin.

If the London 2012 Games medals were made of solid gold, it would cost nearly $40 million to make. This is why the last time pure gold medals were presented was in 1912.

The custom of awarding gold, silver and bronze medals began in the 1904 Summer Olympics in St. Louis, Mo. These metals represent the first three Ages of Man in Greek mythology: the Golden Age, when men lived among the gods, the Silver Age, where youth lasted a hundred years, and the Bronze Age, the era of heroes.

Each medal is 85mm in diameter and between 8-10 mm thick. The gold and silver medals weigh 412 grams (0.9 pounds) and the bronze medal weighs 357 grams (0.78 pounds). They are the biggest and heaviest summer Olympic medals ever made, according to the WGC.

Eight tons of precious ore for all the medals were supplied by mining giant Rio Tinto and was mined at the Kennecott Utah Copper mine near Salt Lake City, Utah, as well as from the Oyu Tolgoi project in Mongolia, according to the official London 2012 website. For the small amount of non-precious elements used in the bronze medals, the zinc was sourced from a mine in Australia as well as from recycled stock, while the tin originates from a mine in Cornwall, England.

The metal was sent to Spain where it was turned into discs and then were produced at the Royal Mint headquarters in Llantrisant, South Wales.

Each medal takes 10 hours to make, according to the WGC. A 35mm disc is placed in a furnace and heated to 750 degrees Celsius (1,382 degrees Fahrenheit) to soften the medal. The metal disc is then struck 15 times under 900 tons of pressure.

All of the medals were designed by British artist David Watkins.

The circular form of the Olympic medals is a metaphor for the world. The front of the medal always depicts the same imagery at the Summer Games—the Greek Goddess of Victory, Nike, stepping out of the depiction of the Parthenon to arrive in the host city.

The design for the reverse, according to the London 2012 website, features five symbolic elements:

* The curved background implies a bowl similar to the design of an amphitheatre.
* The core emblem is an architectural expression, a metaphor for the modern city.
* The grid suggests both a pulling together and a sense of outreach—an image of radiating energy that represents the athletes’ efforts. 
* The River Thames in the background is a symbol for London and also suggests a fluttering baroque ribbon, adding a sense of celebration. 
* The square is the final balancing motif of the design, opposing the overall circularity of the design, emphasizing its focus on the center and reinforcing the sense of “place” as in a map inset.

For those in London, the medals can be seen at the British Museum throughout the Games.

Please join the Jewelry News Network Facebook Page.

World Gold Council Drafts Conflict-Free Gold Standards

Gold doré

The World Gold Council said Friday that it is developing a system similar to the Kimberley Process for diamonds to ensure that gold is coming from conflict-free sources.

The WGC, which serves as the marketing development organization for the gold industry, said it has drafted a framework of two standards designed to track gold from the mine to the end of the refining process. They are a “chain of custody” standard and a “conflict-free gold” standard. Under the proposal, both standards will be subject to independent audit. Additional standards on audit, certification and the handling of recycled gold are in development, WGC said.

The WGC said the proposed standards are being “stress tested” in practice by gold mining companies and refiners.

The Conflict-Free draft standard has a “conflict,” a “company,” and a “commodity” assessment proponent, WGC said. It contains a framework of benchmarks and prompts through which companies must assess the adequacy of their systems and analyze their impacts upon those around them. Their conclusions must be auditable. The standard contains principles that assesses a companies’ commitment to respect human rights; ensure that payments are not made, directly or indirectly, to armed groups; be transparent about their payments to governments; only accept gold from conforming sources; and to establish a credible and accessible grievance mechanism.

The chain of custody standard provides the infrastructure for identifying that a consignment of gold doré has been mined according to the conflict-free standard, has not been tampered with during its transport between the mine and the refinery—which may involve it passing through the hands of shipping agents, security, customs and airlines—or during the refining process. The process is based upon a chain of warranties which will be auditable, for example, by insurers or customers. Gold doré is bars of melted gold containing up to 90 percent gold that needs additional refining to become 999.9 parts per thousand pure gold. It's about the size of a loaf of bread and weighs about 60 pounds.

You can download the full text pdfs of the proposals on the WGC website.

Gold, Diamonds and Crystals Glitter, Sparkle, and Shine at Las Vegas Jewelry Week

The World Gold Council's LoveGold exhibit at Couture.

Not everything was for sale at the jewelry shows in Las Vegas this past week although I suppose someone could have purchased the 27-pound gold bar valued at more than $500,000 from the LoveGold Exhibit at the Couture jewelry show.

Gold jewelry from Couture Show jewelry exhibitors.

Up on a stage above the tradeshow exhibitors at Wynn Las Vegas, the World Gold Council’s exhibition included art creations, curated gold jewelry used at red carpet events and selected gold pieces from the vendors at the tradeshow. LoveGold is the fashion jewelry initiative of the WGC, the marketing development organization of the gold industry.

One of the gold fashion displays at the LoveGold exhibit.

Many of the pieces were from the catwalk at Cannes where they were part of a special fashion show that was curated by Carine Roitfeld, the former editor-in-chief of Vogue Paris, to benefit amfAR, the foundation for AIDS research.

“We want to showcase the best that gold can be regardless of origin or price point,” said Sally Morrison of the World Gold Council. “The exhibition at Couture was a way of introducing the beginning of this activity to the brands and press at the show.”

A display at the "Diamonds with a Story" Rio Tinto Diamonds exhibition that highlights diamond origins.

As previously noted, Rio Tinto Diamonds presented an exhibition at the JCK Luxury and JCK Las Vegas tradeshows titled “Diamonds with a Story.” It featured jewelry created for the US market by eight North American designers based on the following four topics: “Origin,” “Cutting Impact,” “Mixed Medium” and “Color My World.” The designers created their works using Rio Tinto's colored diamonds from its Argyle mine in Australia and white diamonds from its Diavik mine in Northwestern Canada.

Varieties of Rio Tinto diamonds.

The exhibit is part of a marketing program by the mining company for the jewelry trade based on its own consumer research. The jewelry collections based on the four stories identify consumers' desire for the following attributes:

• Identifying the place of origin of the diamond they buy;
• Knowing that their diamond purchase is having a positive impact;
• Differentiating designs and concepts; and
• Access to natural colored diamonds

“We are excited by how well the 'Diamonds with a Story' platform is resonating," said Rebecca Foerster, manager of Rio Tinto Diamonds US Representative Office. “This appetite for innovation is good news for miners, manufacturers, retailers and ultimately the consumer.”

Elaborate and colorful jewelry design by David Mandel, part of the Swarovski Elements exhibit at JCL Las Vegas.

Swarovski Elements, the premium brand division of the world-renowned crystal company, Swarovski, provided a fashion-forward jewelry exhibition at JCK Las Vegas called “World Jewelry Facets,” featuring collaborations with designers and artists representing several mediums who created colorful designs using Swarovski crystal.

A necklace by Tim Hosier and Brian Thorson.

The creations ranged from elaborate, fanciful designs to more wearable pieces. Designers included Tim Hosier and Brian Thorson, known for their home accessories designs, to entertainment industry designer David Mandel.

Jewelry by American artists at the Swarovski Elements exhibit

There is also a charitable element with designs created by Senhoa, a non-profit organization and fashion brand that produces jewelry made by survivors of human trafficking. The Senhoa line on display was designed by Canadian model, Coco Rocha, and handcrafted by survivors of exploitation in Cambodia.

Jewelry by the non-profit organization and fashion brand, Senhoa, handcrafted by survivors of exploitation in Cambodia,

 
Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Website.

Global Gold Jewelry Demand Strong in Asia while Weak in U.S., Europe and Middle East

Gold Jewelry demand increased 7 percent, year-over-year, to 556.9 tons in the first quarter of 2011, which translates to a record value of $24.8 billion, the World Gold Council said Thursday. India and China, the two largest markets for gold jewelry, together accounted for 349.1 tons or 63 percent of the total, $16 billion by value.

In the U.S., gold jewelry demand declined 10 percent to 20.5 tons, according to the WGC’s Gold Demand Trends report.

Demand for gold jewelry also fell in other parts of the world. In Europe, demand declined 11 percent to 4.7 tons and in the Middle East it dropped 39 percent to 10.9 tons.

India alone accounted for 37 percent of global jewelry demand. Demand increased 12 percent to 205.2 tons, translating to a 38 percent increase in value, according to the report. Demand in China increased 21 percent, year-over-year, to 142.9 tons ($6.4 billion). In percentage terms, Hong Kong was the largest growth market for gold jewelry, with demand up 32 percent to 7.3 tons.

“The regional breakdown of jewelry demand shows a story of two halves: strength in India and much of the east Asian region contrasting with broad weakness in the western and Middle Eastern markets,” WGC said in its report.

Jewelry demand accounted for 57 percent of all gold demand during the first quarter, according to the report.

(2010 Gold Statistics and 2011 Outlook after jump) 

Gold Demand Statistics for Q1 2011: 

• Global gold demand, which includes its use as an investment vehicle and in the technology sector, increased 11 percent in the first quarter of 2011 to 981.3 tons. In value terms, this translated to a 40 percent increase to $43.7 billion, compared with $31.4bn in the first quarter of 2010, an increase of almost 40%. This was largely attributable to a widespread rise in demand for bars and coins, supported by an improvement in jewelry demand in India and China.

• The quarterly average gold price hit a new record of $1,386.27 an ounce (London PM Fix), its eighth consecutive year-on-year increase.

• During the first quarter of the year, investment demand grew by 26 percent to 310.5 tons. In value terms, investment demand was $13.8bn.

• ETFs and similar products witnessed net outflows of 56 tons ($2.5bn). The collective volume of gold held by global ETFs by the end of the quarter was in excess of 2,100 tons equating to more than $95 billion.

• Technology demand remained steady in the first quarter at 113.8 tons ($5.1bn).

• The gold supply declined in the first quarter by 4 percent, year-over-year, to 872.2 tons due to a sharp increase in net purchasing by the official sector and a fall in the supply of recycled gold, which was down 6 percent to 347.5 tons. Mine production increased by 44 tons (7 percent) year-over-year.

• Central bank purchases jumped to 129 tons in the quarter, exceeding the combined total of net purchases during the first three quarters of 2010.

2011 Outlook
Global gold demand should remain robust for 2011, WGC said, driven by a number of key factors, including:

• Global socio-economic conditions that will continue to drive investment demand for gold, including uncertainty over the U.S. economy and the dollar, European sovereign debt concerns, global inflationary pressures and tensions in the Middle East and North Africa.

• Sustained momentum in Chinese and Indian jewelry demand.

• The continued purchasing of gold by central banks as a means of diversifying their reserves into an asset with no credit or counterparty risk.

“The resilience of gold during recent volatility in the commodities market exemplifies the strength of the global gold market and its unique demand drivers,” said Marcus Grubb, World Gold Council managing director, Investment. “High levels of investment demand across the world, strong demand in India and China, the continued strength of the technology sector together with central bank purchasing demonstrates gold’s diverse demand drivers. We anticipate continued strong demand during the rest of 2011.”

Double-Digit Decline in U.S. Gold Jewelry Demand

The high price of gold continues to have a detrimental impact on the worldwide jewelry market as demand in this sector for the precious metal fell by 6 percent, year-over-year, in the first quarter of 2012, the World Gold Council said Thursday. The value of jewelry demand, meanwhile, grew by 14 percent to $28.3 billion.

Gold jewelry demand was weaker in all but six countries and clearly reflects the year-over-year 22 percent increase in the average gold price of gold to 1,690.57, according to the WGC Gold Demand Trend report for the first quarter of 2012.

In the U.S., demand fell 10 percent to 17.6 tons. In addition to the high price of the precious metal, the report blames high gas prices and cautious consumers. In value terms, gold increased by 10 percent to $958.2 million.

In Italy, demand slid 14 percent to 3.5 tons “as the negative economic environment took its toll,” according to the report. In the U.K., demand dropped 4 percent to 3 tons.

India, the world’s largest consumer of gold and gold jewelry, was largely responsible for the worldwide decline, according to the report. An unexpected substantial increase in the import tax on gold and the introduction of an excise duty on gold jewelry resulted in a three-week countrywide strike among jewelers until the government agreed to end the excise duty. A weaker rupee also added to the decline.

Meanwhile, China dominated the jewelry market as demand increased 8 percent to 156.6 tons in the first quarter. China accounted for 30 percent of all demand for the period, making it the largest gold jewelry market for the third consecutive quarter.

Demand in Russia was also robust with a 28 percent increase in the first quarter to 20.4 tons, attributed partly to stock building among the trade. However, the repot notes that “historically low inflation, GDP growth, improving consumer confidence and real wage gold,” contributed greatly to the gains. “Gold remains the most popular metal of choice among Russian jewelry consumers.”

Overall, global gold demand in the first quarter fell by 5 percent to 1,097.6 tons, the WGC reports. “This decrease was largely to be expected given the introduction of import taxes in India and high gold prices,” the report states. “Demand for the quarter was underpinned by increased demand in China, continued central bank purchasing and inflows into exchange-traded funds.”

Gold demand value for the period increased 16 percent to $59.7 billion. Gold demand includes its use in jewelry, technology, investment and official sector institutions (such as world banks).

“China and India have seen continuing economic growth and whilst China’s economy is expected to slow, it will nonetheless surpass the rates of growth in the West,” said Marcus Grubb, managing director, Investment at the World Gold Council. “As we previously forecast it is likely China will become the largest source of demand for gold in 2012.”

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.

 Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Website.

WGC Report: Q1 Gold Prices Reach New Heights

Photo by Anthony DeMarco of the Jewelry News Network

The World Gold Council recently released a report that was behind the times the moment it was publicized. But it does reaffirm the notion that investment demand in gold is pushing the price to levels that were unheard of just months ago.

Against a backdrop of uncertain global markets and a rising price, gold remained one of the least volatile commodities in the wider commodities mix, with average annualized volatility of only 13 percent, down from its historical 20 year average of 15.8 percent, the WGC said Wednesday in its first quarter 2011 Gold Investment Digest. Top-line findings show that positive investor sentiment towards gold and greater confidence in the timing of jewelry purchases in China and India prompted gold to reach new all-time highs in early April—and ultimately leading it to breach the $1,500 per ton mark.

While the report didn’t discuss the ramifications of the higher prices to the U.S. jewelry industry, the price of gold is now reaching a level that will force jewelry manufacturers and designers into making some difficult decisions.

“Gold's performance in Q1 2011 was characterized by continued concerns over the global economy, which led investors to become increasingly aware of gold's qualities as a preserver of wealth,” said Juan Carlos Artigas, WGC Investment Research Manager. “Our intelligence indicates that purchasing confidence in key jewelry markets, notably India and China, increased during the period, as price volatility declined and the dollar weakened against local currencies, resulting in a more measured price increase.”

A key trend noted in the Gold Investment Digest is the growing concern over global inflation, with comments by the U.S. Federal Reserve signaling an extended period of low rates serving to increase inflation expectations in the US. While inflation in countries such as India and China appears to have subsided to a degree, it still remains high. Moreover the threat of food price inflation is a growing concern for consumers around the world. In this environment, gold provides an alternative to hedge this exposure in a way that is not easily replicated by other assets.

Gold Jewelry Demand Up 18%, Total Demand Up 29%

The gold price rose for the tenth consecutive year in 2010 reaching $1,405.50 an ounce by the end of December on the London PM fix, a 29 percent increase from last year’s levels, the World Gold Council reports.

Last year’s price performance was driven by developments in key gold markets, WGC said in its Gold Investment Digest for the fourth quarter and full-year 2010. China saw increased investment activity, driven in part by innovative new gold investment vehicles offering improved access to the gold market. Globally, investors remained concerned about uncertainty in the macro-economic environment and turned to gold to hedge against weakness in the US dollar and rising inflation in many economies.

However, WGC noted that despite its high cost, global jewelry demand totaled 1,468 tons during the first nine months of 2010—a year-over-year increase of 18 percent. This includes a rebound in gold jewelry consumption in India, the world’s largest gold market.

In addition, gold demand for technological and industrial applications continued to recover during the first nine months of 2010, registering a 19 percent increase over the same period in 2009.

“The gold story in 2010 is about growth in demand and not just economic concerns. It is significant that consumers increased their gold jewelry spending during the first nine months of last year, despite the rising price of gold,” said Juan Carlos Artigas, WGC Investment Research Manager. “Strong investment activity and a normalization of gold demand in technological applications during the same period further supported gold’s stellar appreciation.”

Complete full-year data for gold demand will be available in February when the WGC publishes its Gold Demand Trends report.

Gold Jewelry Demand Up 17% in 2010 led by India and Asia While Demand in U.S. and Europe Remains Sluggish

Annual demand for gold jewelry rose 17 percent to 2,059.6 tons as Asian consumers continue to drive jewelry demand, the World Gold Council reports. The rise in annual average prices over the same period was 26 percent.

In value terms, this resulted in record annual jewelry demand of $81 billion in 2010, according to the WGC’s quarterly Gold Demand Trends report, a 47 percent increase over 2009.

In India, 2010 was a record year as gold jewelry demand rose 69 percent to 745.7 tons. In local currency terms, Indian jewelry demand more than doubled for the year; boosted by a 20 percent rise in the rupee price of gold combined with a 69 percent increase in the volume of demand pushed up the value of gold demand by 101 percent.

“The rising price of gold, particularly in the latter half of the year, created a ‘virtuous circle’ of higher price expectations among Indian consumers, which fuelled purchases, thereby further driving up local prices,” WGC said in its report.

In China, 2010 saw annual gold jewelry demand increase 13 percent to 400 tons. The value measure of demand was more striking, rising 41 percent.


Meanwhile, In the U.S., the long term downtrend in demand for gold jewelry continued throughout 2010, although the pace of decline slowed somewhat, WGC said. Fourth quarter demand of 47 tons was 16 percent below year-earlier levels, translating to a decline of 14 percent on an annual basis. U.S. demand in value terms in 2010 rose by 8 percent to $5 billion.

European gold jewelry consumers, facing continued economic problems, were similarly discouraged by higher gold prices and tonnage demand declined accordingly in these markets, WGC said. Italian demand was 16 percent weaker year-on-year in 2010. Full-year demand in the UK was similarly weak, down 14 percent. On a value basis demand was slightly more robust. Annual demand in Italy was up 12 percent, while UK demand increased by 10 percent.

In Hong Kong, annual jewelry demand reached a 10-year high of 20.6 tons; while demand in Taiwan was less resilient to the higher gold price, resulting in a jewelry demand decline in 2010 of 7 percent, year-over-year.

Gold jewelry demand throughout the rest of the Asian region was weaker relative to 2009 levels as consumers were deterred by soaring gold prices. All markets recorded double digit year-on-year losses, both in the fourth quarter and 2010 as a whole. In Indonesia, Japan, Thailand and South Korea, consumers shifted to lower carat and/or gem-set product and, in some cases, branded silver. In Indonesia in particular, average purity of gold jewelry suffered a notable decline, WGC said.

The one exception was Vietnam, where 2010 demand of 14.4 tons was just 5 percent down on 2009. “When considered in the context of a 30 percent increase in domestic gold prices over the same period, 2010 demand can be considered robust,” WGC said.

The value of annual demand in Japan held steady at 2009 levels, WGC said.

Consumers across the Middle East region responded to high and volatile gold prices in the fourth quarter by cutting back on their demand for gold jewelry. 2010 full year demand was between 6 percent 10 percent below 2009 levels for each of these markets.

In Turkey, 2010 annual demand holding broadly steady at 2009 levels. However, the comparisons are being made with exceptionally weak 2009 numbers, WGC said. By value, jewelry demand, 2010 demand increased by 20 percent, year-over-year. “However, in a historical context, this is still well below the levels of two-three years ago, WGC said.

Russian gold jewelry demand grew 12 percent in 2010, to 67.5 tons.

Overall, the WGC said annual demand of all gold usage (including as an investment and its use in manufacturing and technology) increased 9 percent to 3,812.2 tons, which was worth approximately $150 billion.

“This performance was mainly attributable to strong growth in jewelry demand, the revival of the Indian market and strong momentum in Chinese gold demand and a paradigm shift in the official sector, where central banks became net purchasers of gold for the first time in 21 years. The WGC expects total gold demand to remain resilient across jewelry, investment and technology sectors over the coming quarter.”