China's Gold Jewellers Pivot Abroad Amid Volatility
China's gold jewellery consumption has seen a significant slump of 34%, prompting Chinese gold jewellers to seek new opportunities abroad. According to Wang Lixin, China CEO of the World Gold Council (WGC), they are looking at the Middle East and India as potential markets for their products.
The WGC attributes this shift to gold price volatility, which has led to a decrease in demand for gold jewellery in China. However, Chinese producers have made significant progress in developing new product categories, such as hard pure gold, which uses advanced crafting techniques to make the jewellery thinner and harder without adding extra weight.
At the recent Jewellery & Gem World Hong Kong fair, buyers from the Middle East and India accounted for most of the visitors. Wang expects Chinese jewellers to leverage their expertise in hard pure gold to cater to local preferences for inlaid jewellery.