The market’s insatiable appetite for gold as a precious metal has led to sustained recovery in gold jewellery demand in 2021 after a tumultuous year of pandemic-related lockdowns and business disruptions, with buyers purchasing jewellery as gifts or investment products. 

The World Gold Council (WGC), in a gold market commentary dated June 7, cited various reports indicating strong sales of gold jewellery and investment products in many cities in China, bolstered primarily by robust consumer demand during holidays and weddings. 

A decline in gold prices coupled with expectations of further price upticks also boosted gold jewellery sales. 

Gold prices hit US$1,881.50 per ounce as of June 11 compared to around US$1,940 per oz in early January 2021. Prices reached a low of US$1,691.50 per oz on March 31.

Citing the findings of a survey by JD.com’s Big-Data Research Institute, WGC said jewellery ranked fourth among the top Mother’s Day gifts in 2021, next to cosmetics and skincare; household appliances, and food and beverages. Popular jewellery gifts included gold and K-gold ornaments.

India, another major gold jewellery market, saw muted demand due to Covid-related store closures. However, sales of gold through digital channels remained strong, noted WGC.

Jewellery demand in Q1 was up 52 per cent to 477.4 tonnes, with China leading the growth. The council expects rescheduled weddings as well as buyers’ preference for lightweight gold pieces to bode well for jewellery demand in the country in the second quarter of the year.