FOCUS 焦点 JNA January/February 2024 | 17 Gold’s ‘dragon’ status According to Roland Wang, managing director of World Gold Council (WGC) China, domestic demand for gold remained strong in 2023 despite record-high gold prices and economic uncertainties. Against a challenging backdrop, gold remains one of the best-performing assets, thanks to solid demand. WGC data showed that as of November 2023, gold prices have risen by 17.08 per cent to RMB470.37 (around US$66) per gram. By comparison, prices were at RMB401.76 (about US$57) a gram in November 2022 and RMB374.54 (nearly US$53) during the same period in 2021. The younger generation in China, including the Gen Zs, also loves gold jewellery, revealed Wang. Contemporary and intricate designs, as well as innovations in manufacturing technology to make 24-karat gold jewellery harder yet lighter in weight, are instrumental to this steady demand. WGC data also showed that demand for gold jewellery in China reached 481 tonnes in the first three quarters of 2023, up 8 per cent year on year. Wang explained, “Gold possesses two shining attributes: A luxury commodity and an investment tool. The widespread promotion of lightweight gold jewellery products and gold as a safe-haven asset will continue to attract attention and drive demand amid geopolitical and economic headwinds. In the future, modern developments will be a new normal in China's gold jewellery industry.” Moving forward, volatile gold prices and structural market changes could further challenge the gold market while product innovations, steady demand and buyers’ valuepreservation mentality will boost market growth. Overall, WGC expects the gold market in China to remain stable in 2024. Wu Fenghua, founder and director of Art of TTF Haute Joaillerie, also attested to gold’s versatility and enduring beauty. He noted, “Inventive designs lend modernity to 24-karat gold jewellery, making it resonate with a wider audience. India and other South Asian countries as well as the Arab world favour 22-karat gold jewellery while Europe and the US opt for 18-karat and 14-karat gold jewellery. The Chinese, for their part, have a special connection with 24-karat gold.” State of diamond market The year 2023 was particularly tough for the global diamond market, China included. Diamantaires in China were eager to see recovery in prices and sales, but the business lost steam around March last year. GAC, alongside the National Gemstone Testing Center (NGTC) and Shanghai Diamond Exchange (SDE), issued a joint statement in November last year to address challenges in the natural diamond market. Acknowledging difficulties arising from global economic downturns and industryspecific issues since 2022, the groups emphasised the value of natural diamonds, owing to their rarity and symbolic status. It also differentiated between natural diamonds as a scarce resource, and lab-grown diamonds as massproduced products, noting the widening price gap between the two goods. The groups also urged sellers to educate customers on these differences and pledged to collaborate globally to boost transparency and growth. China's diamond jewellery market reached approximately US$12.2 billion in 2022, accounting for around 11 per cent of China’s jewellery market. By comparison, diamond jewellery makes up 26 per cent of the global jewellery market, which means there is still room for further growth. Yoram Dvash, president of the World Federation of Diamond Bourses (WFDB), said China did not emerge from the pandemic as expected, and this was true across the board, not only for diamonds. He continued, “China is still coping with slow economic growth due to Covid-19. On the other hand, we strongly hope and believe that we will see a turning point at the March Hong Kong show in 2024, with a solid turnout of Chinese Sources: National Bureau of Statistics of China, Gems & Jewelry Trade Association of China, Shanghai Diamond Exchange *Key sampling involved jewellers with annual sales of RMB5 million (US$710,570) and above 资料来源：中国国家统计局和中国珠宝玉石首饰行业协会 *重点调查年销售额在500万元人民币(71.05万美元)以上的珠宝商。 China’s jewellery and diamond status from 2016 to 2023 (January - November) in US$ billion 2016至2023年（1至11月）中国珠宝首饰和钻石数据 (单位：以10亿美元计) 2016 2017 2018 2019 2020 2021 2022 2023 Total retail sales for key sample of jewellers* 限额以上企业零售总额 45.1 43.97 41.71 37.79 34.44 47.14 41.36 42.98 Size of national jewellery market 中国珠宝市场规模 78.29 81.42 87.72 88.45 88.41 111.6 106.9 Not announced/ 未公佈 Size of diamond jewellery market 钻石珠宝市场规模 11.58 15.51 12.19 Not announced/ 未公佈 Polished diamond imports via Shanghai Diamond Exchange 通过上海钻石交易所的成品钻进口金额 2.037 2.515 2.74 1.851 1.424 2.924 1.907 Not announced/ 未公佈
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