According to the World Gold Council (WGC), annual jewellery consumption is projected to increase by 52% in 2021. It showed a full recovery from the Covid-affected 2020. In terms of value, demand reached US$123 billion. It tied the record in 2013.
India and China, countries with strong gold cultures, led the demand growth. The economic recovery supported consumer and business sentiment.
Traditionally, gold is a symbol of power and wealth. But this concept has gradually evolved into a more modern context. Today, gold jewelry celebrates uniqueness and individual style. They are chosen to make a statement, support an idea or underpin a promotion.
Gold also shines as a safe haven in the midst of macroeconomic uncertainties. Investment-wise, gold is poised for further growth, as analysts anticipate an increase in demand for “safe-haven” investments.
WGC data showed that gold prices exceeded US$2,000 per ounce in early March. The war in Ukraine continues to weigh on the global economy. Historically, gold has been a highly valued safe-haven asset in difficult times, WGC noted.
