Tuesday, 18th January 2005 (4335 views)

Luxury consumers are moving towards the gold jewellery market, the World Gold Council (WGC) said on Monday.

According to the council, the trend has been driven by strong prices of gold, with consumers considering both its investment and cosmetic value when making a purchase.

WGC's managing director of marketing and jewellery, Philip Olden, told Reuters. "The top end of the market reflects a more general trend back to gold jewellery overall."

He says that while platinum, with its relatively low market share, has remained as a status symbol for consumers, high-end brands such as Gucci and Dior are now incorporating gold into their collections.

The attraction to gold, according to Mr Olden, is that its strong price value over the past three years means the jewellery has a good investment value as well.

"If consumers regard it as a strong investment as well as being a nice piece of jewellery then that's a very positive thing," he said, adding that consumers become more confident when they see a steady increase in price.

The WGC is hoping that demand for gold jewellery, which rose by 17 per cent in the first three quarters of 2004, will continue in 2005.

 

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