Gold jewelry market in the US beats expectations in 2021, hitting a 12-year high
(Kitco News) - Metals Focus, a leading independent precious metals research consultancy, estimated that gold jewelry market in the United States has remained robust through 2021, despite the slump in consumer confidence since April of this year.
In its recent analytical paper, the consultancy reported that the domestic gold jewelry consumption to exceed 140t this year, which would equate to an increase of more than 10% on 2019, which itself was seen as a good year.
"If achieved, that would be the highest total basis our records going back to 2010. Such levels of course remain well down on historic highs of over 300t, following a decade or two of structural change (chiefly a shift to lower weight, higher margin pieces)," Metals Focus added.
The consultancy noted that the most common story put forward for US strength is consumers with spare cash in their pockets, having been unable to spend as they would like on travel (especially overseas) and remaining cautious as regards restaurants, theatres and so forth.
At the same time, the immediate macroeconomic backdrop is also supportive with wages firming, unemployment low and lower income groups' generous financial government support during the most uncertain phases of the pandemic, Metals Focus said.
"Another supportive factor is the return of weddings postponed from 2020," the consultancy noted.
Metals Focus also pointed at another important factor to consider, which is retailers' responses. There seems to have been a sea change in the online / omni-channel experience, with consumers now perfectly happy to shop in this manner, the consultancy noted.
"All this only reinforces the boost now coming through from all malls being open in conjunction with consumers becoming willing to visit these locations," the authors of the report said.
While there is a clear consensus as regards strength this year, attitudes towards the US jewelry market in 2022 are extremely mixed, according to the report.
"Some see the return of overseas holidays and family trips to the theatre, and higher inflation as meaning a quieter year. However, others think high savings, a fuller emergence from the pandemic and an ongoing love of gold jewellery as sufficient to mean another bumper year," Metals Focus concluded.
By Vladimir BasovFor Kitco News
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