Jewelry demand in Hong Kong surged 37 per cent year-over-year in the fourth quarter to 7.1 tonnes, according to a report by the World Gold Council.
With higher gold prices, tourists from mainland China flocked to Hong Kong to purchase gold jewelry in order to take advantage of lower taxes on the yellow metal. A variety in jewelry designs is also said to have increased demand from Chinese tourists. Demand for gold jewelry in China was up just 2 per cent during the same period.
Domestic demand for gold jewelry was impacted by gold price volatility. Nevertheless, consumers increasingly purchased gold jewelry, especially wedding jewelry.
For the full-year, demand reached 13-year high, increasing 33.5 per cent to 27.5 tonnes.
Here’s a chart from the World Gold Council’s report showing global trends in jewelry purchases: