Gold Jewelry Demand Declines 21 Percent In 1q
By onelove
Gold demand declined 21 percent in the first quarter of 2008 as compared to the same period in 2007, marking the lowest quarterly level on record since 1993, according to the World Gold Council's gold demand trends report for the first quarter of 2008.

The sharp rise in gold prices—which reached levels above $1,000 per ounce in mid March—and unusually high volatility were key determinants in gold demand movements for the first quarter.

Total identifiable demand decreased by 16 percent in tonnage terms from year-earlier levels to 701.3 tonnes, the lowest in five years. However, total identifiable demand actually increased 20 percent in value terms to $20.9 billion, more than double the level of four years earlier.

The

market most severely affected by movements in the gold price was India, where consumer demand decreased by 50 percent to 102.1 tonnes. demand, at 71.1 tonnes, was half the level of demand in the first quarter of 2007.

Gold demand in Asia also declined in Japan (-4 percent), Vietnam (-19 percent) and Indonesia (-27 percent).

In contrast, total gold demand in China increased by 15 percent to 101.7 tonnes, with demand rising 9 percent to 86.6 tonnes. According to the report, continued economic strength allowed Chinese consumers to increase their purchases regardless of the rising gold price.

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