Demand for gold, silver jewelry rises on low metal prices

MANILA, Philippines - Domestic demand for gold and silver jewelry has started picking up in the second semester of the year, boosting hopes for a 30-percent revenue growth in 2013.

Cecille Ramos, chairman of the board of the Meycauayan Jewelry Industry Association, Inc. (MJIA), said they received more orders since June after the prices of these metals went down.

“The prospect for the second half is good because the price of gold went down from P2,300 to P1,850 while that of silver from P45 to P28,” she said.

Ramos said many buyers, especially institutional ones, take advantage of lower prices of gold and silver this early in anticipation that costs will again increase through the Christmas holiday caused by higher demand.

She noted that growth this year is expected to be higher than 2012 when gold prices reached a peak.

Ramos pointed out that demand in key export markets US and Europe remains weak.

She said some exporter members turned to the local market while others resorted to retrenchments to survive weaker export sales.

Ramos said local jewelry producers also participate in more domestic trade fairs to get more buyers.

“They are also promoting their products using social networking sites,” she said, citing a member which received more than a thousand orders after posting a product design on Facebook.