- Date : 13/05/2023
- Read: 3 mins
Why are Indians spending less on gold jewellery while the Chinese are splurging? Find out about the 2023 gold jewellery demand trends in India vs China.
- India's Gold jewellery demand is the lowest since 2020
- China dominates the Gold jewellery market
- Indians spend less on gold due to high prices, volatility, and fewer auspicious days.
- China's recovering economy and increased household income lead to increased spending
In luxury fashion, few items hold as much allure as gold jewellery. For years, India and China have been known for their love of these glittering accessories, often viewed as status symbols. However, recent trends show that the two countries have taken very different paths regarding their gold jewellery demand in 2023. While China has seen an unprecedented surge in sales, with consumers indulging in bold and extravagant designs, India's appetite for gold jewellery has taken a hit, with the first quarter of 2023 seeing the weakest demand since 2020, with just 78 tonnes sold. Let's look at the factors driving these diverging trends in India vs China’s gold jewellery markets.
What does the World Gold Council (WGC) Report state about India's demand for gold jewellery?
According to the World Gold Council (WGC) report, the demand for Gold jewellery in India during the first quarter of 2023 was the lowest since 2020, with only 78 tonnes sold. This is a 17% decrease compared to the same period in 2022. Additionally, a sharp decline of 65% from the previous quarter's demand was exceptionally high. This means that Indian consumers bought much less Gold jewellery at the beginning of 2023 than in the last years.
What does the World Gold Council (WGC) Report state about the demand for Gold jewellery in China?
People in China bought a lot of gold jewellery in the first quarter of the year. They bought 198 tonnes, which was 41% of the total amount of gold jewellery bought worldwide during this period. This was the highest amount of gold jewellery purchased in China during the first quarter of 2015.
Read article: Gold trend over 20 years: How to become an intelligent gold buyer
Reasons for less spending on gold jewellery by Indians
The report cites rising gold prices, volatility, and fewer auspicious days for lower demand for gold jewellery in India. Additionally, investment demand for gold bars and coins fell by 17% due to global factors such as US interest rate hikes and the depreciation of the Indian rupee.
Also Read: Gold ETFs vs Physical gold: Which one is better?
Reasons for more spending on gold jewellery by Chinese
In China, the first quarter GDP grew by 4.5% YoY and household income increased by 4% in real terms, further fuelling the demand for gold jewellery. Additionally, pent-up demand from previous quarters and the easing of COVID-related restrictions boosted demand for wedding gold jewellery, with the wedding industry operating at total capacity in 2023.
The outlook for gold jewellery demand in 2023 is mixed. India is expected to see weak demand, while China will expect a more robust market. The factors that will determine the final outcome include the pace of economic growth in both countries, the level of inflation, and the price of gold.
- India's Gold jewellery demand is the lowest since 2020
- China dominates the Gold jewellery market
- Indians spend less on gold due to high prices, volatility, and fewer auspicious days.
- China's recovering economy and increased household income lead to increased spending
In luxury fashion, few items hold as much allure as gold jewellery. For years, India and China have been known for their love of these glittering accessories, often viewed as status symbols. However, recent trends show that the two countries have taken very different paths regarding their gold jewellery demand in 2023. While China has seen an unprecedented surge in sales, with consumers indulging in bold and extravagant designs, India's appetite for gold jewellery has taken a hit, with the first quarter of 2023 seeing the weakest demand since 2020, with just 78 tonnes sold. Let's look at the factors driving these diverging trends in India vs China’s gold jewellery markets.
What does the World Gold Council (WGC) Report state about India's demand for gold jewellery?
According to the World Gold Council (WGC) report, the demand for Gold jewellery in India during the first quarter of 2023 was the lowest since 2020, with only 78 tonnes sold. This is a 17% decrease compared to the same period in 2022. Additionally, a sharp decline of 65% from the previous quarter's demand was exceptionally high. This means that Indian consumers bought much less Gold jewellery at the beginning of 2023 than in the last years.
What does the World Gold Council (WGC) Report state about the demand for Gold jewellery in China?
People in China bought a lot of gold jewellery in the first quarter of the year. They bought 198 tonnes, which was 41% of the total amount of gold jewellery bought worldwide during this period. This was the highest amount of gold jewellery purchased in China during the first quarter of 2015.
Read article: Gold trend over 20 years: How to become an intelligent gold buyer
Reasons for less spending on gold jewellery by Indians
The report cites rising gold prices, volatility, and fewer auspicious days for lower demand for gold jewellery in India. Additionally, investment demand for gold bars and coins fell by 17% due to global factors such as US interest rate hikes and the depreciation of the Indian rupee.
Also Read: Gold ETFs vs Physical gold: Which one is better?
Reasons for more spending on gold jewellery by Chinese
In China, the first quarter GDP grew by 4.5% YoY and household income increased by 4% in real terms, further fuelling the demand for gold jewellery. Additionally, pent-up demand from previous quarters and the easing of COVID-related restrictions boosted demand for wedding gold jewellery, with the wedding industry operating at total capacity in 2023.
The outlook for gold jewellery demand in 2023 is mixed. India is expected to see weak demand, while China will expect a more robust market. The factors that will determine the final outcome include the pace of economic growth in both countries, the level of inflation, and the price of gold.
