The gold jewelry market in the US has remained robust through 2021, despite a dramatic slump in consumer confidence recorded since April, according to London-based consultancy Metals Focus.
Domestic gold jewelry consumption in the US is expected to exceed 140 tons this year, marking an increase of over 10% compared to pre-pandemic 2019 levels.
If such a high is achieved, the firm said, it would match records going back to 2010.
"Such levels, of course, remain well down on historic highs of over 300 tons, following a decade or two of structural change (chiefly a shift to lower weight, higher margin pieces),” the Metals Focus analysts also pointed out in its recent analytical paper, as quoted by Kitco News.
The expert assessment stresses that American consumers have been unable to spend as much as they used to before due to travel restrictions and extreme caution in regard to visiting restaurants, cinemas and shopping malls. Meanwhile, the immediate macroeconomic backdrop has turned to bolstering, with wages firming, unemployment low and state financial aid for low-income groups during the worst periods of the pandemic.
“Another supportive factor is the return of weddings postponed from 2020,” Metals Focus noted.
The analysts also highlighted the importance of online shopping, which became extremely popular during the pandemic.
“All this only reinforces the boost now coming through from all malls being open in conjunction with consumers becoming willing to visit these locations,” according to the consultancy's report.
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