Shenzhen Jewelry Fair Attracts Over 10,000 Buyers

The 13th edition of the China International Gold, Jewellery & Gem Fair – Shenzhen attracted more than 10,458 local and overseas buyers, according to UBM Asia, which owns and operates the trade fair.

The fair, which took place April 20 to 22 at the Shenzhen Convention & Exhibition Center, had buyers from 66 countries and regions and recorded 11,844 total number of visits (including revisits). They were there to view the products and services of 409 exhibitors from 12 countries and regions, including Mainland China, Germany, Hong Kong, India, Korea, Russian Federation, Singapore, Sri Lanka, Taiwan region, Thailand, the United Arab Emirates and the United States.

Mainland Chinese visitors totaled 9,422 from 31 provinces, autonomous regions and municipalities of mainland China. The top 5 sources of local visitors were Guangdong, Hunan, Jiangxi, Zhejiang, and Hubei.

“We are very happy that the Shenzhen Fair once again successfully played its role as a key professional event for mainland China’s fine jewelry trade and an effective platform for developing new business relationships," said Celine Lau, Director of Jewellery Fairs, UBM Asia.

More than 130 local and overseas media representatives also attended the fair. 

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Regional Instability Causes 3% Drop in Global Gold Jewelry Demand

Emperatriz Maxi Earrings by Carrera y Carrera

The world continues to be more complicated and complex as it also becomes more interdependent. The World Gold Council’s Gold Demand Trends report for the first quarter of 2015 reflects this instability.

Global gold jewelry demand for the first quarter of 2015 declined 3 percent to 600.8 tons, primarily due to large swings in demand in regions throughout the world, but particularly in the world’s two largest gold jewelry markets: China and India.

The largest decline in gold jewelry demand in tons came from China, which fell by 10 percent year-over-year to 213.2 (a 23 ton decline), according to the World Gold Council’s quarterly report, Gold Demand Trends. This was offset by a 22 percent rise in demand in India to 150.8 tons (a 27-ton increase).

“The impact of these two key markets is illustrated by removing them from the global total,” the World Gold Council said in its report. “Jewelry demand excluding China grew 1 percent, year-on-year, while removing India from the total yields a 9 percent decline. The extent of this impact confirms the importance of both markets to global consumer demand.”

The WGC said the sharp increase in demand in India was more of a reflection of unusual weakness in the year-earlier period than any particular strength in the first quarter of 2015. Economic uncertainty and temporary government restrictions on the purchase of the precious metal restricted demand a year ago.

The story with China is somewhat similar in that first quarter 2015 demand was paired against a particularly robust first quarter of 2014. The WGC said the current decline in gold jewelry demand in China is due to three factors:

* Slowing GDP growth;
* Rallying stock markets; and
* Cautious outlook for gold prices.

“Against this background of factors, Chinese New Year—traditionally a popular time for buying and gifting gold jewelry—was relatively restrained,” WGC said.

Well-designed 18k gold is particularly appealing to the younger generation of Chinese, according to the report. In recent years, 24k “Chuk Kam” gold far outweighed the lower-karat segment, accounting for around 90 percent of the market at its peak, WGC said. Eighteen-karat gold now accounts for around 12 percent of the gold jewelry market in tonnage terms.

“Despite the year-on-year decline in Q1, the longer-term rising trend remains firmly intact,” the WGC said.

Jewelry demand in Hong Kong was down 26 percent as it was harder hit by the Chinese government’s anti-corruption campaign than the mainland. The number of tourists visiting from the mainland China jumped during the Chinese New Year holiday in February. However, it was followed by a 10 percent decline in March on tension between Hong Kong and the Chinese government. Measures to limit the number of trips Shenzhen residents can make to Hong Kong were introduced in April, which may further dampen demand in the second quarter, the WGC said.

In the US, gold jewelry demand experienced its third consecutive year-over-year increase in the first quarter as what the WGC describes as a “fragile recovery” continues with household wealth and economic growth. This year the increase in first quarter gold jewelry demand was at 4 percent to 22.4 tons.

Higher carat jewelry remains popular the US. “However, (consumers) were cautious in their approach to spending and the trade views the prospects for the remainder of the year with guarded optimism,” the WGC said.

It adds that “conservative consumer attitudes towards spending and a general lack of innovation in the design and market are potential headwinds.”

The UK market continues to mirror US trends, WGC said, where demand there also grew by 4 percent. However, European markets as a whole were weaker where demand dipped by 2 percent to 12.5 tons “amid stronger euro prices and mixed economic signals.”

In the Middle Eastern markets, domestic unrest, particular in Egypt, has had an impact on gold jewelry demand. In Egypt, demand fell by 31 percent to its lowest level since the second quarter of 2012. The entire region, with the exception of Saudi Arabia (which grew by 5 percent), saw varying year-over-year declines that on average were at 8 percent. Russia reported the largest drop in gold jewelry demand at 40 percent. Turkey saw a 28 percent decline in demand.

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China International Gold, Jewellery & Gem Fair – Shenzhen opens

The China International Gold, Jewellery & Gem Fair – Shenzhen opened Monday at the Shenzhen Convention & Exhibition Center. The 13th edition of the fair is will run till Wednesday.

The Fair occupies 22,500 square meters of gross exhibition space and features more than 400 exhibitors from 12 countries and regions. These include mainland China, Germany, Hong Kong region, India, Korea, Sri Lanka, Taiwan region, Thailand, the United Arab Emirates, the United States, Russian Federation and Singapore.

Jewelry brands participating, include: CHQ GmbH, Fancy Gem House, KGE Rough & Gems HK Co Ltd, S. T. Trading STS Gems Ltd, Sunny Gem Co, Fai Dee Gems Co Ltd, Zhejiang Angeperle Co Ltd, Fai Po Group, and Shanghai Kimberlite Diamond Co Ltd.

This year’s edition also features specialized pavilions to global buyers, including the China Gold Association Pavilion, the Baolin Pavilion, the Korea Pavilion, and the Designer Pavilion.

Meanwhile, the China Jewellery Market Summit returns from its successful launch last year. “The inaugural edition of the China Jewellery Market Summit in 2014 was welcomed warmly by participants. The summit returns this year with even more informative topics that are sure to engage everyone,” said Celine Lau, director of Jewellery Fairs, UBM Asia Ltd. “We have also allocated more resources to provide a bespoke platform for jewelry companies to launch new products.”

The China Jewellery Market Summit 2015 will be held Tuesday at the New Product Launch and Forum Area in Hall 9 and starts at 2:30 pm. Co-organizer is Jewellery News Asia. The Summit is divided into two main parts: 2015 New Products Launch - Jewellery Parade, and Dialogue with China Jewellery Brands and Retailers.

The summit includes fashion shows and a series of forums on a range of industry-related topics, particularly the opportunities and challenges in China's jewellry retail market. Chan Sai Cheong, executive director of Chow Tai Fook Jewellery Group Ltd is the keynote speaker. 

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Shenzhen Jewelry Fair To Open April 20

The 13th edition of the China International Gold, Jewellery & Gem Fair – Shenzhen, the jewelry trade event for Southern China, will be held April 20 to 22 at the Shenzhen Convention & Exhibition Center. 

The Shenzhen Fair, which occupies 22,000 square meters of exhibition space, brings together more than 380 exhibitors from 12 countries and regions, including Germany, mainland China, Dubai, Thailand, the United States, as well as Hong Kong and Taiwan. They will display jewelry, raw materials, and tools and equipment.

The Shenzhen Fair is timed for jewelers needing to replenish stock after a number of festivals and holidays. The dates for the fair over the past few years have been dependent on the Chinese New Year dates. But beginning this year, fair organizer UBM Asia will hold the event every April to enable buyers and exhibitors to plan in advance.

Participating jewelry companies include CHQ GmbH Fancy Gem House, KGE Rough & Gems HK Co Ltd, S. T. Trading STS Gems Ltd, Sunny Gem Co, Fai Dee Gems Co Ltd, Zhejiang Angeperle Co Ltd, Fai Po Group, Shanghai Kimberlite Diamond Co Ltd, Colorful Gems Ltd Divine Star (HK) Ltd, Rio Pearl, Shenzhen Himens Jewellery & Gold Co Ltd, and Vetorisn Jewellery Co Ltd.

As part of the Shenzhen Fair, Jewellery News Asia, the largest jewelry trade magazine in Asia, is presenting its second annual China Jewellery Market Summit, April 21 at 2:30 p.m. with its magazine. The Summit is divided into two main parts: 2015 New Products Launch - Jewellery Parade, and a dialogue with China jewelry brands and retailers.

This year, the Shenzhen Fair presents specialized pavilions to global buyers, including the China Gold Association Pavilion, the Baolin Pavilion, the Korea Pavilion and the Designer Pavilion.

The fair is open to jewelry trade buyers and the public.

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10% Drop in 2014 Global Gold Jewelry Demand

This Indian woman who reportedly wore more than $600,000 worth of jewelry to her wedding may have helped India achieve an 8 percent gain in gold jewelry demand in 2014

Global gold jewelry demand fell 10 percent year-over-year in 2014 to nearly 2,153 tons as strong growth in India, the US and UK couldn’t offset declines in many other large gold markets, the World Gold Council said Thursday.

The WGC, in its quarterly Gold Demand Trends report for the fourth quarter and year-end 2014, says the decline was largely due to extremely strong comparisons to 2013. 

“2014 was always going to be a difficult year for jewelry demand, contending with comparisons to phenomenal strength in 2013,” WGC said in the report. “After a steep drop in Q2, demand for gold jewelry gradually recovered, culminating in the strongest Q4 since 2007.”

The report also notes that the year-end figure is “comfortably above” the 2,053 ton average for the the prior five-years. 

Despite the drop for 2014, year-over-year fourth quarter demand actually grew by 1 percent to 575 tons, again led by a surge in year-end demand in India, the US and the UK, according to the report. 

The report, which also tracks gold demand for technology, investment and central bank net purchases, says jewelry remains the biggest source of demand for gold, accounting for nearly 55 percent of total demand in 2014. 

Declines were reported in much of the world including nearly all of Asia, the Middle East, Russia and in gold manufacturing centers Turkey and Italy. 

The biggest surge in demand for 2014, by far, was in India—one of the two largest gold markets in the world. India had its strongest year for jewelry demand since the WGC began tracking demand in 1995, up 8 percent year-over-year to 662 tons. Wedding- and festival-related purchases drove fourth quarter demand up 19 percent and first-half 2014 up 37 percent, year-over-year. “The second half of the year was the strongest H2 in our data series (from 2000),” the WGC said in its report.

However, it should be noted that the results in India are being compared with extremely weak 2013 results, due to restrictions of gold imports and the decline in value of the local currency in 2013. 

The other largest gold jewelry market in the world, China, saw its 2014 demand fall by 33 percent year over year to 623.5 tons. Despite this, it was still the second best year for jewelry demand in the country since WGC records began. 

In the US, jewelry demand showed year-over-year growth for the seventh consecutive quarter. Its fourth quarter result of 54 tons was a 13 percent year-over-year increase and the strongest fourth quarter since 2009. The 2014 full year demand of 132.4 tons was a 9 percent year-over-year increase and the highest year-end total in five years. 

“That being said, it clearly has to be acknowledged that the market remains far below pre-crisis levels of jewelry demand, which between 2000 and 2006 averaged 360 tons per year,” WGC added.

In the UK, demand increased by 18 percent in 2014 to 27.6 tons. In the fourth quarter sales increased by 14 percent to 15.9 tons, led by the introduction of “Black Friday” sales events for the Christmas holiday season, the WGC said. 

“Lower carat gold jewelry took market share from silver and some interest in heavyweight plain gold chains was reported,” WGC said. 

In most other major gold jewelry markets, demand was down. 

The Asian region was generally weak, with smaller markets “affected by its own individual set of adverse economic circumstances that proved detrimental to jewelry demand,” WGC said in its report. Japanese demand for jewelry slid 8 percent in 2014 to an all-time low of 16.3 tons as the already ailing consumer sentiment “was dealt a blow by the sharp fall in the value of the yen after the central bank unexpectedly expanded its monetary stimulus program in the last quarter.” 

There was a 12 percent decline in demand in Indonesia, the largest of the non-Chinese Asian markets, due high inflation and political upheaval. Newly elected President Widodo announced the removal of gas subsidies in October, “which further choked disposal income.”

Vietnam bucked the trend with a 4 percent gain in 2014.

Other markets are as follows:

* Turkey, demand was down 7 percent to 68.2 tons. 

* Middle East, markets in this region lost a combined total of 8 percent in 2014 to 174.1 tons.

* Russia, gold jewelry demand in Russia dropped sharply in the fourth quarter, leading to a net decline of 4 percent to 70.6 tons for 2014. “The stratospheric rise in the gold price during the fourth quarter (as sanctions and sliding oil prices hit the domestic currency) proved too steep for many consumers.”

WGC says that Jewelry is by far the largest component of above-ground stocks of gold—accounting for almost half of the 177,200 tons of gold estimated to be held by private owners and central banks. 

The total global gold market in 2014 declined 4 percent to 3,923.7 tons, according to the report. The total global supply of gold was flat at 4,278.2 tons. 

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Q3 Global Gold Jewelry Demand Down 4%, US Demand Up 4%; India Demand Surges 60%

Global gold jewelry demand fell 4 percent year-over-year to 534.2 tons for the third quarter of 2014, according to the World Gold Council in its Gold Demand trend report released Thursday. However, the decline comes against an unusually robust third quarter of 2013, which experienced the strongest growth for jewelry demand since 2008. 

“Longer term analysis shows a market in good health. Q3 demand was marginally stronger than the five-year quarterly average of 527.6 tons, while year-to-date volumes continue to extend the broad uptrend from the low seen in 2009,” the WGC said in its report.

Two markets did shine, the US, with a 4 percent rise that helped lift manufacturing outputs in several gold jewelry producing countries; and India, which surged 60 percent. China and Hong Kong, meanwhile, experienced steep declines in gold jewelry demand. 

US ‘Revival’
The WGC’s report said the economic recovery and a downward trend in the price of gold created a “revival” of gold jewelry demand in the US that has had a “ripple effect” around the world.

“The US sucked in greater volumes of gold jewelry imports from markets as diverse as India, China, Italy, Mexico and Oman, according to the report. “Third quarter growth in the US market was very much an extension of the trend that has prevailed since early last year. Mounting conviction in the economic recovery has boosted sentiment and whetted consumers’ appetite for discretionary purchases. Gold jewelry has been a clear beneficiary: improving sales of higher carat and non-wedding related items helped demand to the highest Q3 total since 2009.”

The report added, “Lower gold prices have aided the recovery of US demand as retailers are more easily able to meet key price points without crimping margins. Or, similarly, to increase karatage while maintaining price levels. This has enticed some mass- market retailers back into the gold jewelry sector.”

India
The market that had the strongest third quarter by far was India, which reported a 60 percent year-over-year increase to nearly 183 tons—the second highest third quarter on record, the WGC said. 

“The third quarter of 2013 was decidedly weak as the introduction of complicated new measures to restrict gold imports and the subsequent sharp rise in local prices knocked demand,” the WGC said in its report. “But this quarter, other more positive forces were also at play.”

Among those forces is the confidence in the new Indian government led by Prime Minister Narendra Modi, a drop in the price of gold and robust buying during the Diwali festival season. 

“Although Indian consumers are typically wary of buying gold while the price is still moving, preferring to wait until it settles at a more stable level, the opportunity to buy at cheaper prices proved, for some, hard to resist.”

China
Meanwhile, China experienced a 39 percent year-over-year decline to 147.1 tons in gold jewelry demand. Hong Kong (where consumers from the mainland China account for most of the demand) fell 31 percent to 9 tons. The WGC said much of this decline is in comparison to the rapid expansion throughout 2013 and that gold jewelry sales are normalizing.

“18-karat (K-gold) jewelry was relatively more robust than the 24-karat (chuk kam) segment,” the WGC said. “The government’s anti-corruption drive may have contributed to this trend.”

Other Markets:
* Indonesia saw third quarter demand fall 16 percent to 9.7 tons partially in response to strength of demand last year. However, the WGC said “equally important was the Presidential election in July, which created a degree of political instability and discouraged spending on gold jewelry.” 

* Third quarter jewelry demand in Turkey fell 18 percent, year-over-year, to 19.2 tons—the lowest third quarter on record, the WGC said. “Consumers were unnerved by domestic political turmoil; worrying economic signals; and escalating Syrian violence in close proximity to the Turkish border. The ban on paying for gold jewelry by credit card installments continued to hang over the market, although this restriction was partially repealed in October.”

* Demand in the Middle East fell 14 percent year-over-year to 36 tons. Demand for gold jewelry across the region suffered from the comparison with strong demand last year, the WGC said, leading to a trend towards lower-karat and gem-set jewelry.

* Jewelry demand in the UK increased 18 percent to 4.6 tons, the fifth consecutive year-over-year rise.

* Gold jewelry demand in Russia edged up 1 percent year-over-year to 18.6 tons, despite a rise in the average domestic gold price due to a weaker rouble, the WGC said. 

* Demand in Italy fell 4 percent year-over-year to 2.7 tons. 

The Gold Demand Trends report also tracks gold for investment and technology purposes. In the third quarter overall demand was “subdued,’ the WGC said, falling by 2 percent to 929.3 tons. The price was relatively stable for the period. 

“Quarterly volatility in the US$ gold price was among the lowest levels seen over the past two decades,” WGC said. “This was both a cause and effect of the benign demand environment. Investor behavior in particular contributed to this circularity: the lack of a clear price signal caused investors to hold back from buying gold, which in turn dampened down price moves.”

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September Hong Kong Jewelry Fair is a Global Event and a Gateway to China

Registration during the opening day of the 2013 September Hong Kong Jewellery & Gem Fair.

The world’s largest jewelry fair is set to begin in two weeks and its organizers are still billing it as the entryway to the fastest growing jewelry market in the world: China. 

The September Hong Kong Jewellery & Gem Fair will be held from September 15 – 19 at the AsiaWorld-Expo near Hong Kong International Airport; and September 17 – 21 at the at the Hong Kong Convention and Exhibition Centre in the heart of the city. 

AWE will display jewelry raw materials from over 1,700 exhibitors from around the world, while HKCEC will showcase fine finished jewelry from more than 1,900 exhibitors.

China Market Research Reports reveals that 2013 jewelry sales in Mainland China were approximately $75.8 billion, equivalent to 41.2 percent of total global consumption. UBM Asia, which organizes the fair, says that Hong Kong's location and its duty-free status makes it the “ideal gateway to China and the rest of the Asia." It's a claim UBM Asia has made since I started attending the event more than 10 years ago and it's even more true now than it was back then.

“The Fair occupies 135,000 square meters of exhibition space to accommodate more than 3,680 exhibitors from 51 countries and regions,” said Sunny Chan, Deputy Fair Manager, Jewellery Fairs, UBM Asia. “We expect to welcome more than 52,000 visitors from around the world.” 

New attractions at the 32nd fair include exhibitors from Egypt, Kazakhstan, Norway and Tahiti. For the first time, coral exhibitors from Japan will exhibit under the banner of Japan Coral. Together with coral exhibitors from Taiwan and Italy, there are more than 60 coral exhibitors at AsiaWorld-Expo. 

In addition, the fair has 22 dedicated pavilions: Antwerp, Brazil, China, Columbia, France, Germany, Hong Kong, India, Indonesia, Israel, Italy, Japan, Korea, Poland, Singapore, Spain, Sri Lanka, Taiwan, Thailand, Turkey, the United States, and the International Colored Gemstone Association, UBM Asia said. This year's “Design Arena” has increased by 40 percent in terms of exhibition space and will relocate to the Chancellor Room and Mezzanine 4 of HKCEC. Also, the International Premier Pavilion is bigger by 8.6 percent in terms of exhibition area.

This outpouring of exhibitors and attendees solidifies its reputation as a truly global event.

The Alrosa Group, Russia’s leading diamond company and the world’s biggest diamond miner by volume, will again host a diamond auction, along with the Paspaley Pearl Auction. In addition, the fair will again feature the world’s largest diamond pavilion, Asia’s biggest gemstone marketplace and the biggest display of Hong Kong jewelry in the world.

Visitor pre-registration is available at this link  until 1st September. The fair mobile app is available for download at this link. More details of special events are available by at this link. 

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Global Gold Jewelry demand Fell 30% While Sales in the US and UK Improve

Yellow and white gold bracelets by Italian jewelry brand, Antonini. There was increase in Italian gold jewelry exports for the second quarter of 2014. 

Plummeting gold jewelry sales in India and China led to a 30 percent year-over-year drop in gold jewelry demand for the second quarter of 2014, the World Gold Council said Thursday. The loss was slightly offset by increases in consumer demand in the US and UK. 

Gold jewelry demand fell to 509.6 tons in the second quarter of 2014 compared with 726.7 tons in the same period of 2012, the WGC said in its quarterly report, “Gold Demand Trends.” Officials for the gold industry market development organization said the decline was expected due to the strength of 2013 demand and a natural annual weak period for such demand. In addition, the organization (which also tracks gold demand in investment, among central banks and for technology uses) notes that jewelry demand historically has accounted for more than half of global gold demand and the second quarter of 2014 was no different at 53 percent. 

“In what is traditionally a quiet quarter for gold jewelry demand, Q2 2014, was unsurprisingly lower,” said Marcus Grubb, WGC managing director of Investment Strategy, said in a video addressing the report. “However, jewelry has been extending its broad upward trend from the base established in the depths of the financial crisis in early 2009.”

Nearly all Asian and Middle-Eastern countries experienced double digit declines in demand, while western markets either remained flat or fared better, according to the report. The exception is Italy, where consumer demand was down 8 percent. However, the country, known as a gold jewelry manufacturing hub, saw gold jewelry exports improve due to increased demand in the US and other key markets.

This decline in gold jewelry demand helped to influence a 16 percent drop in overall gold demand (investment, central banks and technology) to 963.8 tons, which the WGC described as “not surprising … given the stark contrast in conditions in the global gold market between the two time periods.” 

Grubb added, “Global gold market continues to recalibrate in 2014 following an exceptional 2013 for gold buying.” 

By country, China was the market most affected by the comparison with the second quarter of 2013, WGC said. Gold jewelry demand fell 45 percent to 143.4 tons. Hong Kong also experienced a similar decline (52 percent to 9.1 tons) due to a drop in mainland China consumers.

“The second quarter began as the first had ended, with consumers adopting a more cautious, considered and ‘occasion driven’ approach to gold jewelry buying,” according to the report. 

Grubb added, “Price sensitive consumers … held back from purchasing more due to uncertainty around the future direction of the gold price and the fact that purchases have been made in 2013 instead.” 

In India, jewelry demand fell by 18 percent to 154.5 tons. The WGC said holiday and wedding purchases remained steady but the drop was primarily because of the recent general election that culminated in the victory of Narendra Damodardas Modi who took office as India’s 15th prime minister in May. High value purchases were restricted by the previous government in the run up to the election, the WGC explained. Now consumers are waiting to see whether Modi will remove those restrictions.

“Consumers held back from buying on the expectation that restrictions on gold would be relaxed by the new government,” Grubb said. “No substantial changes have been made by the Indian government to date.”

In the Middle East gold demand saw a 25 percent decline to 47 tons. The WGC says the escalation of violence in Iraq had a “deleterious impact” on demand across the region. In addition, demand slowed ahead of Ramadan. “Nevertheless, the region as a whole remains relatively healthy, particularly as non-resident Indians provide a steady source of demand for the 22k segment.” 

While the east and Middle East markets are in decline, western markets are continuing to rebound from the 2008-09 recession, with the most notable increases in the US and UK. 

Gold jewelry demand in the US for the second quarter increased 15 percent to 26.1 tons as the country is taking in more imports from India, China and Italy. It was the country’s fifth consecutive quarter of year-over-year growth. In the UK, demand increased 21 percent to 3.6 tons. 

Gold jewelry demand in other key markets is as follows:

* In Turkey, demand fell 20 percent year-over-year due to a clampdown on credit card purchases and ongoing political turmoil, WGC said. The lower end market took the brunt of the decline while larger, more established brands were “relatively resilient.” 

* Thailand experienced a 60 percent decline in demand due to recent political instability and high comparisons to the second quarter of 2013, the WGC said.

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UBM Asia’s Shenzhen Fair Sets Attendance Record

The 12th edition of the China International Gold, Jewellery & Gem Fair – Shenzhen (held February 26 – March 1) welcomed 12,828 unique visitors from 76 countries and regions, up 103.5 percent from last year, according to UBM Asia, which organizes the annual jewelry trade fair at the Shenzhen Convention & Exhibition Center. The total number of visits (including revisits) rose by 90.2 percent to 14,620. 

Celine Lau, UBM Asia director of Jewellery Fairs, attributed the dramatic increase in visitor traffic to the repositioning of the fair as a multi-faceted platform. 

“In this edition, we strategically re-positioned the Fair as a multi-facetted platform to launch new products, get the latest market intelligence, build brands and source new products," she said.

UBM Asia added that it enhanced visitor promotion, helping boost the number of quality buyers. It invited large-scale local retailers in mainland China to source in the fair as well as trade buyer delegations. The trade buyer delegations included members of Chinese jewelry associations, provinces and cities from Guangdong, Tianjing, Sichuan, Dalian, Jiangxi and Taizhou.

Media coverage of the fair by the 140-plus local and overseas media representatives also played a role in boosting visitor numbers, the organizers said. 

Nearly 400 exhibitors from 13 countries and regions, including Belgium, mainland China, Finland, Germany, Hong Kong region, India, Japan, Korea, Sri Lanka, Taiwan region, Thailand, United Arab Emirates and USA, attended the fair this year.

Mainland Chinese visitors totaled 11,269 from 31 provinces, autonomous regions and municipalities of mainland China. The top 5 sources of local visitors were Guangdong, followed by Zhejiang, Shanghai, Beijing and Shandong.

Visitors from overseas and Hong Kong region reached 1,559, up around 40 percent year-over-year. Sources of the top 10 buyers (excluding mainland China and Hong Kong region) were India, followed by Taiwan, USA, Russian Federation, Malaysia, Indonesia, Singapore, Korea, Australia, Canada and Italy.

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2013 Gold Jewelry Demand Up 17%

Marco Bicego 18k gold bracelet

Gold jewelry demand in 2013 saw the largest volume increase in 16 years as consumers across the globe reacted to lower gold prices, the World Gold Council said Tuesday. Full year demand was 2,209.5 tons, 17 percent above 2012 levels.

In addition, the fourth quarter of 2013 was the sixth consecutive quarter of year-over-year growth with demand of 553.8 tons, 12 percent above the five-year quarterly average, the WGC said in its market report, Gold Demand Trends: Full year 2013 Review. Jewelry consumption saw continuous growth throughout 2013, with the bulk of the increase coming in the first half of the year due to China and other Asian countries whose consumers responded quickly when the price first dropped. However, even during the second half of the year, the volume of demand continued, increasing by 7 percent year-over-year.

Also in the fourth quarter, the US and the UK generated a combined 14 tons of this growth. “Although the fourth quarter is traditionally strongest in these markets, due to the Christmas effect, these numbers are significant given their size and direction – the first year-on-year increase in Q4 demand in both markets since 2001,” WGC said in its report.

In addition to jewelry, the WGC report measures gold consumption in technology, investment and central bank purchases. The value of overall annual jewelry demand fell 28 percent in 2013 from its record highs a year earlier. However, in terms of jewelry demand, the value fell less than 2 percent, showing its strength in volume terms. 

New gold jewelry consumption records were set in India, China and Turkey in 2013. Even Japan, with its struggling economy recorded the highest value for the precious metal since 2008.  

“A longer term perspective shows that an increasing share of global collective wealth has been allocated to gold jewelry since 2003 (with the exception of 2009, during the worst of
the financial crisis),” the WGC said in its report. “In 2013, gold jewelry value was almost 0.14 percent of global GDP compared with less than 0.08 percent ten years previously. Significantly, jewelry share of global GDP in 2013 was one fifth higher than 1997, which was the
peak year for gold jewelry demand in tonnage.”

The year 2013 was also notable because of the increasing preference for higher-karat jewelry, particularly in China (24k jewelry). “This trend became more entrenched as the year progressed, benefitting from the quasi-investment element to jewelry purchases, particularly as the upsurge in demand in Q2 and Q3 led to a shortage of retail investment products.”

In the US, where the top end segment has been relatively robust, this trend was more noticeable at the lower end of the market, with mass retail brands shifting away from ultra-low carat items to increasing their stock of 14k jewelry.

Fourth Quarter Jewelry Trends
“Fourth quarter jewelry demand across eastern markets was likely tempered by the magnitude of buying in previous quarters, which on account of falling prices, had ‘cannibalized’ a proportion of future demand,” the WGC said. “In addition, expectations that prices had stabilized released the pressure on consumers who no longer felt they had to make purchases immediately to take advantage of lower prices.”

India - Fourth quarter jewelry demand fell 2 percent year-over-year to 150.7 tons. “The second half of the year was considerably weaker than the exceptional first half, equating to a robust full year total for the sector.”

China and Hong Kong – The WGC is calling the fourth quarter a slowdown from the record numbers during the first half of the year (with the exception of December leading to Chinese New Year), but demand still increased 10 percent to 150.7 tons for Mainland China for the period. In Hong Kong the growth was even greater at 17 percent to 7.9 tons.

Other Asian Markets – China’s pattern was replicated across the other Asian and Middle Eastern markets with strong demand during the first half of the year, tapering off in October as the drop in gold prices stabilized with growth in December. Fourth quarter results are as follows: Taiwan up 2 percent; Indonesia, up 28 percent; South Korea down 7 percent; Thailand up 17 percent; and Vietnam up 9 percent. 

Turkey – The gold jewelry manufacturing center also saw a similar pattern of demand but for different reasons, the WGC said. A strike at the mint between July and September led to a shortage of coins in the market, leading consumers to stock up on gold jewelry. However, once the strike was settled in the fourth quarter consumers went back to gold coins, at the expense of jewelry.

Japan – Its 11 percent growth in the fourth quarter was the exception to the regional trend of strong start and weaker finish to 2013, the WGC said. This was because of encouraging economic news and the anticipation of a sales tax increase from 5 to 8 percent in April, leading consumers to make pre-emptive purchases, where possible, to avoid paying the higher rate.

US and UK – Demand among US and UK consumers led to fourth quarter growth at 21 and 26 percent respectively. As mentioned previously, gold jewelry sales accelerated in the latter months of the year. 

Italy – Demand in this jewelry manufacturing center continued its downward trend falling by 10 percent in the fourth quarter. 

Russia – Jewelry demand reached a five-year high in the fourth quarter (up 6 percent), fueled by continued expansion of the middle class, with growth being concentrated in the second half of the year. 

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UBM Asia’s Shenzhen Fair Opens February 26

More than 380 exhibitors from 13 countries will be showcasing their products and services during the 12th edition of the China International Gold, Jewellery & Gem Fair – Shenzhen, to be held February 26 to March 1 at the Shenzhen Convention & Exhibition Center. 

The tradeshow is timed for jewelers to restock their inventories of jewelry, gemstones and related products following the Christmas and Chinese New Year shopping seasons. 

This year’s show will include a new element, the “China Jewellery Market Summit 2014.” Co-organized by UBM Asia’s Shenzhen Fair, CJNA and Shenzhen Jewelry Designers Association, the summit is divided into three main parts: “Spring Collection 2014 - Launch of New Products and Designers’ Products,” “Dialogue with China Jewellery Brands, Retailers and Designers,” and “ China’s Jewellery Retail Sector.” The summit will be held during the first two days of the fair. 

In addition, there will be collections focusing on jewelry trends for the spring from some of the top jewelry companies and independent jewelers in China. 

The trade fair will have leaders of the Chinese jewelry industry discussing seasonal jewelry trends, increasing brand value and the balance between creativity and commercial marketability. 

A separate forum will be held to discuss the opportunities and challenges in China’s jewelry retail market. 

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Jaquet Droz, Chopard And Vacheron Constantin Celebrate Year of the Horse

Jaquet Droz

January 31 marks the beginning of the Chinese New Year, the longest and most important celebration on the Chinese calendar. This upcoming year is the Year of the Horse. Those born in horse years are said to be cheerful, skillful with money, perceptive, witty, talented and good with their hands. If Jaquet Droz, Chopard and Vacheron Constantin, have their way, those born in horse years and all who celebrate the Chinese lunar calendar will also be attracted to their highly decorative and functional luxury watches made to commemorate this moment in time.

Jaquet Droz
The watch brand has a long association with China and it produces models annually commemorating the Chinese New Year. This year it created three watches in its Ateliers d'Art series that uses three complex techniques: engraving, painting and Grand Feu enamel.

The colorful dial of the Petite Heure Minute 39mm depicts a landscape with two hand-painted Arab thoroughbreds at full gallop on an ivory enamel dial.

A sculptured wild mustang appears on the dial of the Petite Heure Minute 43mm appearing in red gold and engraved in bas-relief on a black dial. The champlevé technique, used for the first time by Jaquet Droz, highlights the movement of the mane and the tail, both filled in with black Grand Feu enamel. On each of these models, a horse's head is also represented on the back of the white gold oscillating weight.

The dial of the Petite Heure Minute 41mm depicts an 18k red gold horse rearing up on its hind legs against a backdrop of the Great Wall of China, engraved and patinated by hand on a mother-of-pearl dial.

All of the watches come in red gold cases and each are available in a limited edition of 88 pieces.

Vacheron Constantin Legend of the Chinese Zodiac

Vacheron Constantin
The venerable luxury watch brand also has a long association with China and produces a series of watches called “The Legend of the Chinese Zodiac” as part of its Métiers d’Art collection.

For the Year of the Horse, Vacheron unveiled two watches crafted in a choice of pink gold or platinum and enhanced by enameling and engraving. For this year’s model, the company took its inspiration in the Chinese art of paper cutting known as Jianzhi. The leaf motif, stemming from classic Chinese iconography is directly engraved in the gold dial. The pattern remains semi-embedded and stands out from its gold base by a subtle stage-setting of variously accentuated reliefs. Raised bamboo stalks appear to be floating over the dial.

The engraved horse appears in pose on the center of the dial. Its mane and coat measures a fraction of a millimeter. Grand Feu enameling is then applied in layers.

Powered by the mechanical self-winding caliber 2460 G4, the dial of the watch provides a hands-free display of time through four windows respectively revealing the hour, the minutes, the day and the date—each appearing through one of the four apertures arranged around the central dial motif.

Each model is limited to 12 pieces and sold exclusively through Vacheron Constantin boutiques.

Chopard L.U.C XP Urushi Horse

Chopard
The Japanese art of Urushi is the inspiration of the L.U.C XP 2014 “Year of the Horse” special edition watch. Its hand-painted employs Japanese-inspired traditional artistic techniques. It depicts a noble prancing horse, adorned with lotus flowers—a plant symbolizing personal fulfillment.

Urushi is a long-established lacquering art. The varnish is derived from the sap of the Urushi tree, also called the “lacquer tree” or “Japanese varnish tree”, mainly found in Japan and China. Maki-e, a technique derived from the art of Urushi, consists of sprinkling the lacquered coating with metal powder – in this case gold – in order to accentuate its outlines. The gold dust is applied using bamboo tubes and small natural-hair brushes in order to trace extremely fine lines.

The ultra-thin timepiece measuring 39.5mm in diameter and 6.8mm thick has a mechanical self-winding movement equipped with two barrels ensuring a 65-hour power reserve.

The watch comes in a box decorated in Urushi techniques. Black on the outside and Maki-e gold on the inside, it is shaped like an octagon—the oriental symbol of gaiety, according to the company—and finished with a silk fastening cord.

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30% Increase in Customers at Treasures Hangzhou Jewelry Fair

The second edition of Treasures Hangzhou ended with a 30 percent increase in visitors, according to UBM Asia, who owns and operates the high-end jewelry show for consumers.

More than 1,200 high-net-worth consumers attended the three-day event at the Hyatt Regency Hangzhou, in eastern China near Shanghai.

“The increase in attendance numbers is certainly encouraging because it not only confirmed the strength of the high-end jewelry market in Eastern China, but also the healthy development of the Hangzhou Fair,” commented Joe Ho, UBM Asia’s Deputy Jewellery Fairs Manager for China.

Treasures Hangzhou is jointly organized by UBM China Holdings Limited, UBM China (Guangzhou) Co Ltd, the Jewelry Jade Industry Association of Zhejiang and Beijing San Arts Import & Export Co Ltd. 

The fair provides a platform where consumers can purchase jewelry and gemstones from suppliers from various parts of the world. It featured about 30 high-end jewelry exhibitors from five countries and regions, namely: China, Hong Kong region, Sri Lanka, Taiwan region and Thailand. The exhibitors brought with them jewelry, diamonds, gemstones, pearls and jadeite jewelry.

During the fair, professional seminars were to held on jadeite and high-end jewelry, which including jewelry investment opportunities.

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5% Increase in Q3 Gold Jewelry Demand

Gold jewelry demand for the third quarter of 2013 increased 5 percent year-over-year to 486.7 tons, the World Gold Council said Thursday, marking the best third quarter performance for the precious metal since 2010. 

In terms of value, gold being used for jewelry for the period fell by 15 percent year-over-year, due to a drop in the trading price of the precious metal, according to the WGC’s Gold Demand Trends report for the third quarter of 2013. Demand for the period was worth $20.8 billion, the lowest quarterly value since the third quarter of 2010.

Global growth for the period was led by high-karat gold jewelry purchases in Asia, the Middle East and the US, 

“An almost universal phenomenon in the third quarter was the increasing popularity of higher carat jewelry,” the WGC said in its report. “Across Asia, the Middle East and in the US, higher carat jewelry was noted as an area of particular growth as the increased investment properties associated with gold of higher purity came to the fore. The fact that jewelry retailers in a number of markets were increasingly stocking investment products (small bars and coins) provided further evidence of the greater blurring of the jewelry/investment distinction.”

Consumers in China generated 163.7 tons of jewelry demand in the third quarter, making it by far the largest single jewelry market. The country’s year-to-date, demand of 518 tons already equals the same amount for the full-year 2012.

“To some extent, exhaustion set in towards the end of Q3 after such a frenetic second quarter, but continued expansion of the retail network confirms that the trade sees prospects for growth,” the WGC said.

Increases were reported in 24k jewelry (known as “chuk kam”), which has a purity rating of 95.95 percent and in “four nines” gold (gold jewelry of 99.99% purity, compared with the typical 24-carat purity of 99.95%). The WGC explained that the former is unique to China and is most popular with consumers in lower tier markets and rural areas as an investment hedge.

Mainland Chinese consumers also attributed to a 28 percent increase in gold jewelry consumption in Hong Kong to 7.5 tons.

In the US, the WGC noted that “demand was a key development.” Gold jewelry demand for the third quarter rose 14 percent year-over-year to 43.4 million tons.

With the exception of fourth quarter demand (driven by holiday sales), the third quarter was the first quarter in four years in which gross jewelry demand exceeded recycling—creating net positive jewelry demand,” the WGC said. “Since Q3 2009, gross new quarterly jewelry demand had been exceeded by the recycling of old gold jewelry as distress selling took off during the economic downturn,” WGC said. “Increasingly positive sentiment among US consumers during the third quarter reversed this trend.”

The report also notes a shift towards 18k jewelry from 14k.

“Given recent developments in the US, consumer sentiment has taken a hit early in the fourth quarter, but the seasonal impact, together with prices holding below US$1,400/oz, suggests a certain amount of resilience,” the WGC said.

India, one of the world’s largest markets for gold jewelry, saw demand drop by 23 percent year-over-year to 104.7 tons due to import restrictions imposed by the government. “Demand for gold jewelry among Indian consumers remains strong, but reduced supply has prevented this demand from being fully realized,” the WGC said.

"The smaller Asian markets had robust growth for the period, with the exception of South Korea where weak consumer sentiment and a sluggish domestic economy dampened demand," the WGC said. "Across the rest of the region, there was a trend for higher karat jewelry pieces of relatively simple design as consumers across the region took advantage of gold’s increased affordability."

Gold jewelry demand in the Middle East increased 9 percent to 51.2 million tons, due to lower prices across the region, the WGC said. The “unsurprising” exception was Egypt.

“The emphasis on 22-karat gold at the expense of 21- and 18-carat diamond-set jewelry suggests demand was stronger among domestic consumers relative to western tourists.”

The third quarter in Turkey, which is traditionally strong, saw year-over-year demand increase 14 percent. In value terms, demand was virtually flat, due to a 12 percent decline in the local currency price of the precious metal.

Russia’s growing middle class, armed with greater disposable income, helped generate a 7 percent year-over-year growth in jewelry demand.

“European markets were again the exceptions to the more positive global picture, with both UK (-14%) and Italy (-7%) posting year-over-year declines due to “economic concerns,” WGC said.

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9th China International Gold, Jewellery & Gem Fair – Shanghai opens Nov. 8

The key fine jewelry trade fair in Eastern China, the 9th edition of the China International Gold, Jewellery & Gem Fair – Shanghai, will be held from Nov. 8 – 11 at the Shanghai World Expo Exhibition and Convention Center.

More than 300 exhibitors from 17 countries and regions will showcase contemporary jewelry, classic bestsellers and up-and-coming trends in 17,000 square meters of exhibition space.

“The trickle-down effect from China’s booming economy has contributed to the robust growth in jewelry consumption in China,” said officials representing UBM Asia, which owns and operates the tradeshow.

Retail sales of consumer goods in Shanghai totaled RMB388 billion ($63.63 billion) in the first half of 2013, according to the Shanghai government, and sales during that period increased by 60 percent.

With its November schedule, the Shanghai fair provides a last-minute opportunity for buyers to replenish inventories for the Christmas and Chinese New Year seasons.

The fair will have several pavilions and special product displays. They include:

* Premier Pavilion, which features world-renowned high-end jewelry retailers;

* Taiwan Pavilion with 30 exhibitors, featuring with its translucent jade and jadeite jewelry;

* Sri Lanka and Thailand Pavilions with 40 exhibitors featuring colored gemstones;

* The Australia Pavilion will make its debut at the Fair featuring its national gem: opal. It will include the National Opal Collection with its display of rare opal fossils and specimens from the dinosaur age.

Translation services will be provided on site for free, upon request. An on-site professional product testing service to examine the quality of products. In addition, a free shuttle bus service will be provided to take visitors from Exit 4 of “Yaohua Road” Metro Station to the fair venue.

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