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Thursday, 29th October 2009 (399 views)

Experts have suggested that demand for gold jewellery will stay high in spite of the current price of the precious metal.

Jewellery buyers seem to be coming to terms with the possibility that gold prices could continue to hover around the $1,000 per ounce mark for some time, according to the Wall Street Journal (WSJ).

This trend is perhaps most pronounced in China, where the country's Golden Week national holiday brought a surge in demand for gold jewellery despite its cost.

Peter Lim Fung, head of dealing at Hong Kong-based Wing Fung Precious Metals, remarked: "Even with the price higher, Chinese investors continue buying gold."

In India, the festival season - particularly the run-up to Diwali earlier this month - also resulted in increased gold sales, especially coins, despite prices reaching an all-time high.

The WSJ noted recent figures from precious metals consultancy GFMS indicating that worldwide demand for jewellery was relatively steady during the last gold bull run, with sales seeing a ten per cent drop between 2002 and 2007 despite a 200 per cent rise in prices over this period.

 

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