Jewellery Focus June 2018 | Page 12

MONTH IN REVIEW www.jewelleryfocus.co.uk 1 2 3 4 5 6 7 8 GOLD CONSUMER DEMAND ACCOLADES The World Gold Council has launched a one-off essay collection titled ‘Gold 2048’, which analyses how the gold market is set to evolve over the next 30 years. Contributions from authors such as George Magnus, senior economist, Rick Lacaille, global chief investment officer of State Street Global Advisors, and Michelle Ash, chief innovation officer at Barrick Gold include: n  The expanding middle class in China and India, combined with broader economic growth, will have a significant impact on gold demand. n  Use of gold across energy, healthcare and technology is changing rapidly. Gold’s position as a material of choice is expected to continue and evolve over the coming decades. n  Mobile apps for gold investment, which allow individuals to buy, sell, invest and gift gold will develop rapidly in India and China. n  Environmental, social and governance issues will play an increasing role in re-shaping mining production methods. n  The gold mining industry will have to grapple with the challenge of producing similar levels of gold over the next 30 years to match the volume it has historically delivered. Aram Shishmanian, CEO of the World Gold Council said: “Since its creation in 1987, the World Gold Council has worked with policymakers, regulators and industry participants to drive understanding of and, ultimately, demand for gold.” He added: “The next 30 years will no doubt bring significant changes – some we anticipate, some that none of us predict. I am delighted that in ‘Gold 2048’ we have brought together a stellar set of contributors – economists, investment managers, leaders in the mining industry, as well as our own specialists – to consider the global trends and dynamics that will drive this fascinating market forward.” Global consumer demand for diamond jewellery hit a new all- time high in 2017, climbing to US$82bn (£60.7bn), according to industry insight data published by De Beers Group. The US was the main driver for the overall 2% growth for the fourth consecutive year, where positive macroeconomics and strong consumer confidence saw demand for diamond jewellery increase 4% to US$43bn (£31bn), representing more than half of total global demand. An increase in self-purchase of diamond jewellery helped drive demand, representing 33% of total US diamond jewellery pieces acquired in 2017. Consumer demand in Mainland China, the world’s second largest consumer market for diamond jewellery, also returned to positive growth in 2017, reflecting the trend of the broader luxury goods sector. Demand increased 3% in local currency and 1% in US dollars, totalling $10 bn (£7.4bn). Growth was supported by strengthening macroeconomics towards the end of the year and a 20- year high in consumer confidence. In addition, there was a revival in the Hong Kong market in the second half of 2017, driven by both stronger local demand as well as a resurgence of Mainland visitor shopping. Bruce Cleaver, CEO, De Beers Group, said: “People around the world are spending more on diamond jewellery than ever before and it’s encouraging to see consumers in the US, the world’s largest and most mature market, leading the way. Six jewellery companies have been named in the London Stock Exchange’s annual 1000 Companies to Inspire Britain report. World Gold Council releases 30-year outlook on gold industry 12 JEWELLERY FOCUS Global consumer demand for jewellery hits new record high of $82bn Jewellers named in London Stock Exchange’s 1000 Companies to Inspire Britain Allum & Sidaway, David Christopher Jewellers, In-Time Watch and Jewellery Reports, Monica Vinader, Pragnell Jewellers and Watchfinder were all named in the fifth edition of the report, which focuses on the fastest growing SMEs in the UK. Monica Vinader, Watchfinder and Pragnell Jewellers were those estimated to have the highest revenue over the past 12 months when taking into consideration the companies’ size and age. With Pragnell Jewellers the only one of the three to be singled out in the report. The West Midland company was labelled a “Jewel in the UK’s Crown” with estimated revenues of £30-40m. The report states:“From an engagement ring fit for the Queen to a world-record-busting, limited edition, Patek Philippe watch, it is the incredibly diverse range of goods that makes the historic business the success it is today.” Quoted in the report, Pragnell managing director Pragnell, said: “We have the most diverse range of goods and services in jewellery-related matters in the UK. We have a fantastic selection of luxury watches from the world’s leading watch brands, to a beautiful collection of modern, antique and period jewellery, and modern and antique silver.” June 2018 | jewelleryfocus.co.uk