Lightweight, innovative gold jewellery pieces will continue to attract younger consumers in China in 2020 amid indications of subdued economic growth, which could affect consumer sentiment, according to the World Gold Council (WGC).
In its latest report, Outlook 2020 global economic trends and their impact on gold, WGC cited market surveys suggesting economists' expectations of growth in 2020 for most countries, with a few forecasting contractions in major economies by 2021 or 2022.
Median forecasts however point to projections of softer global economic growth relative to 2019, noted the council. “This, combined with gold price volatility at or above current levels, may discourage jewellery consumers and cause technology demand to soften,” it added.
Slower economic growth in China, coupled with rising prices of staples, has also resulted in shrinking consumer budgets.
“With tighter budgets and higher expenditure on staple goods, consumers will likely limit their consumption of luxury items, putting pressure on China’s jewellery demand,” noted WGC. “In addition, demand from younger consumers is shifting towards innovative jewellery pieces with fashionable designs and lighter weights – a divergence in sales of traditional and innovative products that we expect will continue in 2020.”