FinancialsNov 26, 2025
Movado CEO Talks Tariffs, Growing Interest in Accessible Luxury WatchesDuring its Q3 call, CEO Efraim Grinberg discussed the deal to lower tariffs on Swiss-made watches, watch market trends, and more.
MajorsAug 10, 2020
Gold Passes $2K Per Ounce as Jewelry Demand Plummets
And the price is likely to keep rising this year.
The gold price rose to a record high this month, crossing the $2,000-per-ounce threshold. Pictured here is Gumuchian’s Honeybee “B” 18-karat gold and diamond linking bracelet.
London—The story of gold jewelry demand and price in the first half of the year is inextricably linked to the COVID-19 pandemic.
As nations across the world enacted lockdown restrictions, primarily during the second quarter, to slow the spread of the coronavirus, demand for both gold and gold jewelry plummeted, the World Gold Council said in its most recent Gold Demand Trends report.
Even as the pandemic severely hampered consumer demand, it also provided an opportunity for investment, with central banks and governments fueling record flows into gold-backed ETFs, lifting the gold price to record highs in several currencies.
As of Friday, the precious metal was trading at $2,034.80 per ounce, according to Kitco.com, a major increase since the start of the year.
In January, the gold price averaged $1,560.67, Kitco charts show.
The gold price continued to rise until mid-March, when it fell to a low of $1,474.25 as governments worldwide began enacting stay-at-home orders.
Then it began its rise again, increasing every month until it passed the $2,000-per-ounce price point in August, reaching its highest point in eight years.
And it doesn’t seem likely it will level out anytime soon, according to some experts.
A few sources have predicted the price of gold could increase to as much as $3,000 per ounce within the next 18 months or even by year’s end.
As the gold price continues its climb, jewelry demand has gone the other way.
According to the World Gold Council, gold jewelry demand was nearly cut in half during the first half of the year, falling 46 percent year-over-year to 572 tons, which it said is the lowest since it started keeping track.
It’s also around half of the 10-year average of 1,106 tons.
In Q2, demand reached a quarterly low of 251 tons, a 53 percent decline year-over-year, as consumers across the world felt the effects of lockdown and the resulting economic slowdown.
In the U.S., demand lost some of the momentum it had gained in recent years, falling 34 percent year-over-year in the second quarter to 19.1 tons, the lowest quarter in WGC’s series.
H1 demand was also down, declining 21 percent to an eight-year low of 41.9 tons.
WGC said store closures due to COVID-19 were the “clear reason” for the decline, made even more severe because the lockdown encompassed two holidays—Easter and Mother’s Day.
Demand “collapsed” in April
and May before recovering in June as stores slowly started reopening and consumers started spending their government-issued stimulus checks.
While the U.S. experienced a drop-off, China and India were the biggest contributors to the global demand decline in the first half of the year, WGC said. Their size when compared to the rest of the world means weakness there has “an overwhelming impact” on global demand.
Q2 jewelry demand in China fell 33 percent year-over-year to 90.9 tons, resulting in a 52 percent decline year-over-year in the first half of the year to 152.2 tons, its lowest H1 since 2007.
As the earliest market to emerge from lockdown, China was the only one to see a quarter-over-quarter recovery from “extreme Q1 weakness,” WGC said, and a “sizable” rebound in jewelry demand from the first quarter to the second.
Even with the upswing, first-half demand in the country remained “muted,” with retailers attributing the weakness to high gold prices, falling disposable incomes, and a greater preference for lighter-weight gold jewelry products.
Q2 gold jewelry demand in India plunged due to the country’s lockdown, the loss of a festival buying occasion and the higher gold price, declining 74 percent year-over-year to 44 tons, the lowest quarterly total in WGC’s series “by some margin,” it said.
This meant H1 demand was down 60 percent to an all-time low of 117.8 tons.
The country’s lockdown lasted from late March until mid-May, running through the important gold- buying festival of Akshaya Tritiya, with sales “trivial” when compared with the previous year as stores remained closed.
As restrictions eased in the middle of the second quarter, activity picked back up in some regions.
June saw further improvement but a lack of weddings and auspicious holidays in the month, as well as recurring lockdowns and the high gold price, hampered any meaningful recovery.
Gold jewelry demand in Europe also fell to an all-time low.
The second quarter was down 42 percent year-over-year to just 8.2 tons, taking the first-half total down 29 percent to 19 tons.
While the U.S. experienced a drop-off, China and India were the biggest contributors to the global demand decline in the first half of the year, WGC said. Their size when compared to the rest of the world means weakness there has “an overwhelming impact” on global demand.
Q2 jewelry demand in China fell 33 percent year-over-year to 90.9 tons, resulting in a 52 percent decline year-over-year in the first half of the year to 152.2 tons, its lowest H1 since 2007.
As the earliest market to emerge from lockdown, China was the only one to see a quarter-over-quarter recovery from “extreme Q1 weakness,” WGC said, and a “sizable” rebound in jewelry demand from the first quarter to the second.
Even with the upswing, first-half demand in the country remained “muted,” with retailers attributing the weakness to high gold prices, falling disposable incomes, and a greater preference for lighter-weight gold jewelry products.
Q2 gold jewelry demand in India plunged due to the country’s lockdown, the loss of a festival buying occasion and the higher gold price, declining 74 percent year-over-year to 44 tons, the lowest quarterly total in WGC’s series “by some margin,” it said.
This meant H1 demand was down 60 percent to an all-time low of 117.8 tons.
The country’s lockdown lasted from late March until mid-May, running through the important gold- buying festival of Akshaya Tritiya, with sales “trivial” when compared with the previous year as stores remained closed.
As restrictions eased in the middle of the second quarter, activity picked back up in some regions.
June saw further improvement but a lack of weddings and auspicious holidays in the month, as well as recurring lockdowns and the high gold price, hampered any meaningful recovery.
Gold jewelry demand in Europe also fell to an all-time low.
The second quarter was down 42 percent year-over-year to just 8.2 tons, taking the first-half total down 29 percent to 19 tons.
More on Majors
The Latest
TrendsNov 26, 2025
Piece of the Week: Rosior’s Pumpkin RingRosior’s high jewelry cocktail ring with orange sapphires and green diamonds is the perfect Thanksgiving accessory.
IndependentsNov 26, 2025
Greenwich St. Jewelers Launches Colorful Holiday CampaignThe “Embrace Your True Colors” campaign features jewels with a vibrant color palette and poetry by Grammy-nominated artist Aja Monet.
Brought to you by
Impacting Tomorrow TodayHow Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.
Events & AwardsNov 26, 2025
Grandview Klein Presents 4 Scholarships in NamibiaThe company gave awards to four students at the Namibia University of Science & Technology, including one who is a Grandview Klein employee.
Weekly QuizNov 20, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
IndependentsNov 25, 2025
Pearl Stringer Margaret Hoisik DiesShe is remembered as an artist who loved her craft and was devoted to her faith, her friends, and her family.
SourcingNov 25, 2025
Finestar Opens Diamond Manufacturing Facility in JohannesburgIt joins the company’s other manufacturing facilities globally, including in India, Botswana, and Namibia.
Brought to you by
Roseco Releases New Full-Line CatalogRoseco’s 704-page catalog showcases new lab-grown diamonds, findings, tools & more—available in print or interactive digital editions.
TrendsNov 25, 2025
Amanda’s Style File: Polka DotsThe polka dot pattern transcends time and has re-emerged as a trend in jewelry through round-shaped gemstones.
CrimeNov 25, 2025
Former Arizona AG Official Charged With Trafficking Stolen JewelryVanessa Hickman, 49, allegedly sold a diamond bracelet that was mistakenly sent to her home.
Events & AwardsNov 25, 2025
GIA Awards Susan Jacques With Its Highest HonorGIA’s former president and CEO was presented with the Richard T. Liddicoat Award for Distinguished Achievement.
Recorded WebinarsNov 24, 2025
Watch: Top Tips for Social Media EtiquetteSocial media experts spoke about protecting brand reputation through behaving mindfully online.
WatchesNov 24, 2025
Breitling Reveals Plans for Gallet, Universal GenèveIn 2026, the three will come together as “House of Brands,” with Gallet sold in Breitling stores and Universal Genève sold separately.
CollectionsNov 24, 2025
Muse Debuts a Wicked 'Have a Heart x Cynthia Erivo' SequelThe second drop, which includes more Elphaba-inspired pieces from additional designers, will continue to benefit nonprofit Dreams of Hope.
IndependentsNov 24, 2025
J.R. Dunn Jewelers Names New PresidentSecond-generation jeweler Sean Dunn has taken on the role.
SourcingNov 21, 2025
De Beers’ Branded, Traceable Diamonds Roll Out to 19 Retailers Called “Origin by De Beers Group,” the loose, polished diamonds are being sold in a total of 30 stores in the United States and Canada.
CollectionsNov 21, 2025
Piece of the Week: Melissa Kaye’s ‘Rocky Infinity’ NecklaceThe lariat necklace features a 4.88-carat oval-cut Zambian emerald in 18-karat yellow gold.
AuctionsNov 20, 2025
Vanderbilt Jewels Shine at Phillips Sale, Pink Diamond WithdrawnA 43-carat sapphire brooch from the Vanderbilt collection was the top lot of the Geneva sale.
CollectionsNov 20, 2025
Rebecca Rau Jewels Debuts With ‘Then & Now’ CollectionRau is a fourth-generation art and antique dealer from M.S. Rau gallery whose first jewelry collection merges artifacts with modern design.
Policies & IssuesNov 20, 2025
RJC Names New Executive DirectorFormer De Beers sustainability leader Purvi Shah will take over the role in February 2026.
WatchesNov 20, 2025
LVMH Takes Minority Stake in Citizen Group-Owned Movement Maker La Joux-Perret is based in La Chaux-de-Fonds, Switzerland, and makes solar quartz as well as mechanical watch movements.
GradingNov 20, 2025
Julia Griffith Joins SSEF as Head of EducationShe previously taught at Gem-A and is the founder of The Gem Academy.
CollectionsNov 19, 2025
Larkspur & Hawk Celebrates 25 Years With Helena Bonham Carter CampaignThe British actress and her daughter modeled pieces from the brand’s new “Palette” capsule for its “Once Upon a Time” holiday campaign.
TechnologyNov 19, 2025
Google Has a New Form for Reporting ‘Review Bombing’ Attacks Plus, the tech giant shares the steps retailers should take if they believe they’re a victim of a review extortion scam.
IndependentsNov 19, 2025
Houston Jeweler Keith Shaftel Retires, Next Generation Steps In Danny and Gaby Shaftel are now Shaftel Diamonds’ CEO and chief operating officer, respectively.
TrendsNov 19, 2025
Midas Chain Releases 2025 Holiday Style GuideThe jewelry manufacturer’s seasonal offering features its new “Melodie” bangles, as well as mini stud earrings and layering pieces.
Events & AwardsNov 18, 2025
NYC Jewelry Week 2025: 12 Must-See EventsWith more than 140 activations taking place in New York City now through Nov. 23, these 12 events are can’t-miss moments.
