The high gold prices weakened the demand in the jewelry industry considerably last year – also in the luxury segment.
The total turnover of German manufacturers in the 18-carat alloys used in this area was only 28 percent less at 28 tonnes than in the previous year. This was announced by the Edelmetalle Specialist Association in Pforzheim.
Due to the current golden price records, private investors had also used the first three quarters of the past year to make old jewelry, bars and coins in money. The demand for bars and coins fell by 23 percent.
People want security
At the end of 2024, however, this trend, not least due to uncertainties after the election of Donald Trump as an American president has turned around and continued so far, said Thomas Weiß of the specialist Association. “People want security.” Many people actually thought last year it couldn’t get much worse. “Then Trump came,” said the chairman of the Delecrial Wirtschaft-Work Committee, Franz-Josef Kron.
The interest in smaller golden pieces has since increased, said Weiß. Recently a kind of thin film with a weight of 0.314 grams was also offered. However, about 20 percent more old gold was recycled by the noble metal industry in Germany because of the old gold sales compared to the previous year.
When the tooth gold, the tendency is still shown down. “The dental trend can no longer be reversed,” said Weiß. “You must insist on the dentist if you still want gold in the teeth.”
Predicts difficult
Although gold is mainly seen as an investment product, silver is relevant in technical application, Kron said. Here the need in the field of e-mobility or photovoltaisies was considerable, while demand in vehicle technology decreased as a result of the difficult location in the car industry. The flowering in the armament industry, on the other hand, is hardly noticeable when it comes to precious metal requirements. In general, however, there is a large industrial demand.
It is difficult to say what the year 2025 brings-“because American trade policy can change every day,” said Weiß. The approaching American rates on goods from Europe have further fueled the demand for gold. The price of the precious metal was last climbed to a new all -time high on Tuesday.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
