Gold
jewelry demand in Indonesia is set to expand to a four-year high as consumers
in Southeast Asia’s biggest buyer join India to China in increasing purchases
as prices slump and the middle class expands.
Consumption
of necklaces, bracelets and rings will probably climb to 40 metric tons this
year, according to Iskandar Husin, secretary-general of the Indonesian
Goldsmiths and Jewelers Association. That’s a 30 percent increase from 30.8
tons in 2012, and the most since 41 tons in 2009, data from the London-based
World Gold Council show.
Gold
fell into a bear market in April as haven demand waned and sales from
exchange-traded products reached a record, spurring increased buying from India
to China, the world’s two biggest consumers. President Susilo Bambang Yudhoyono
forecast a jump in per capita incomes this month even as stocks dropped and the
rupiah tumbled. Southeast Asia’s largest economy has more than quadrupled in
the past 10 years to $878 billion.
“Gold
jewelry is all about lifestyle and saving,” Husin said in an interview in
Jakarta. “It’s a market driven by the increase in GDP and modern Indonesian
women, who are following the trends in fashion and design.”
Bullion
for immediate delivery has declined 18 percent to $1,377.50 an ounce this year
on concern that the U.S. Federal Reserve will taper stimulus as the world’s
largest economy strengthens. The precious metal, which dropped to a 34-month
low in June, has lost 28 percent since reaching a record $1,921.15 in September
2011.
(Source: Bloomberg)
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