Gold jewellers anticipating a better year-end

17/09/2008 Perturbed by the spiraling and unprecedented gold prices, coupled with lacklustre economies, gold jewellers have had a tough year so far but many are hoping to see an increase in demand for gold jewellery by 2009. Figures from GFMS' latest Gold Survey 2008 released at the Fair highlight a slump in gold jewellery demand in first half of 2008, confirming the observations of gold jewellery exhibitors. Show Daily spoke to a few jewellers from different country pavilions, inquiring about the movement of gold jewellery and their expectations from the show. "Demand for gold jewellery has been slower than usual, but we have been relatively comfortable as our main market is Europe. Overall I feel the demand will look up soon. We are expecting to find new clients especially from the Middle East and Russia at the show," said Nitesh Agarwal, director, Gosil Exports (P) Ltd, from India, one of the major markets to bear the brunt of fluctuations in gold. According to the Gold Survey 2008, India accounted for over 60 percent of the gross decline. However, demand for high-end and couture jewellery remains stable. "We saw a strong demand for our jewellery, mainly because we create niche jewellery, and cater to high-end clientele in the US as well as Europe and Asia. In fact we have started looking at the Asian and European markets and already have opened avenues in Asia," commented Raymond Hak of Raymond Hak Couture. "The show has been better than what we expected mainly due to an increase in demand for designer jewellery among Asian consumers," added Mr Hak. When questioned about his expectation from the second half of 2008, he said he softening gold and oil prices would have a positive effect on demand for gold jewellery. "This Christmas will definitely be better than the last one," he was quick to add. Meanwhile, several companies are increasingly adopting electroforming as a way to produce bigger but lightweight jewellery, thus bringing down the cost. Can Ozkok of Turkey-based Innova, a first-time exhibitor, said the firm is holding its ground but it is starting to cater to newer markets as well. "We are here to try and penetrate into newer markets. Our jewellery is different from the ones preferred by Asian markets, so we are trying to understand how we can work and cater to Asian markets, especially China, since it's a huge market."

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