Gold jewellery shop in China
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Jewellery sales in China exhibited a slower rate of decline in November while year-on-year January to November figures were unchanged, according to latest government data.
Retail sales of jewellery, gold and silver fell 1.1 percent in November compared to the same period last year, figures from the National Statistics Bureau of China showed.
China’s jewellery sales have been on a downward trend since July when demand dipped 1.6 percent.
Jewellery sales dropped 7 percent in August, 6.6 percent in September and 4.5 percent in October. Sales in this category were up 7.8 percent in June and 3.5 percent in the first half of the year, the statistics bureau said.
Demand for jewellery saw a hefty decline in the third quarter owing to high prices of gold as well as market uncertainties, according to the World Gold Council (WGC).
In its Gold Demand Trends Q3 2019, WGC said global gold jewellery demand dropped 16 percent to 460.9 tonnes as the quarterly average price of gold reached US$1,472.47, up 21 percent year on year.
In China alone, demand slid 12 percent to 156.3 tonnes, marking the fourth consecutive quarter of year-on-year declines. The figure is also 10 percent below the five-year quarterly average of 173.5 tonnes.
According to WGC, consumers spent their money elsewhere due to concerns over the Chinese economy as well as rising inflation in prices of staple goods.
Plain and mass-appeal 24-karat gold jewellery saw a double-digit fall, but retailers recorded growth in sales of 3D hard gold, 5G gold and other innovative products with lightweight and fashionable designs since these appeal to younger consumers.