Global gold jewellery consumption falls 19% YoY in Q2 ’24 – data
Global gold jewellery consumption experienced a significant decline of 19 per cent year-on-year in the second quarter of 2024, totalling 391 tons. This marked the weakest second quarter since 2020, when the pandemic severely impacted consumer demand.
The sharp drop in jewellery consumption was directly attributed to the surge in gold prices during the quarter, which reached a series of record highs.
As a result, the overall value of jewellery demand in Q2 decreased by four per cent year-on-year to $29 billion.
For the first half of the year, global jewellery demand contracted by 10 per cent to 870 tons, despite a relatively resilient performance in the first quarter.
However, in value terms, the first half demand increased by two per cent to $61 billion, marking the highest first-half total since 2013.
China
China’s gold jewellery demand experienced a significant decline of 35 per cent year-on-year in the second quarter, totalling 86 tons.
This represents the weakest second quarter since 2009, as the combination of rising gold prices and a slowing economy dampened consumer sentiment.
For the first half of the year, total gold jewellery demand reached 271 tons, marking a 17 per cent decline compared to the same period in 2023 and the lowest H1 total since 2020.
India
India’s gold jewellery demand experienced a significant decline of 17 per cent year-on-year in the second quarter, totalling 107 tons.
This marks the weakest second quarter performance since the COVID-impacted Q2 2021. As a result, the first-half demand of 202 tons represents the lowest level since 2020.
Middle East and Turkey
Turkish jewellery demand experienced its first year-on-year decline in eight quarters, falling 19 per cent to eight tons in the second quarter.
This drop was even steeper compared to the previous quarter, down 26 per cent. However, this is largely attributed to a strong Q1 performance creating a high baseline for comparison.
Overall, the first half of 2024 saw Turkish jewellery demand remain relatively unchanged at 20 tons. Notably, the total value for H1 reached a record high of 43 billion Turkish lira, reflecting a 76 per cent increase year-on-year.
Egypt emerged as a bright spot in the region, with demand holding steady (+2 per cent). This positive sentiment is likely linked to the IMF bailout package, which boosted consumer confidence and led to a notable increase in demand during the Eid al-Adha holiday.
Economic challenges and stagnant real wages in Iran led to a six per cent year-on-year decline in jewellery demand.
The UAE witnessed its sixth consecutive year-on-year decline (-13 per cent) due to high gold prices and disruptions caused by severe storms in April.
US and Europe
United States Gold jewellery demand weakened by five per cent year-on-year to 33 tons in second quarter, marking the ninth consecutive year-on-year decline. This ongoing trend reflects a gradual normalisation of demand in the US market.
European markets also witnessed a weaker Q2: regional demand was 3% lower at 15t.
ASEAN markets
ASEAN gold jewellery markets exhibited mixed performance in the second quarter. While Vietnam and Indonesia experienced weaker demand, Thailand defied the trend, registering growth despite record gold prices.
Australia
Australia’s gold jewellery demand plummeted by 32 per cent to two tons in the second quarter. The challenging economic environment, characterised by tight financial conditions, significantly impacted consumer spending on gold jewellery.
Attribution: World Gold Council report
