Monday, 14th August 2006 (3671 views)

According to a CNN report, demand for gold jewellery in developing nations across the world is part of the reason for the boom in the price of gold.

The jewellery market accounts for almost three-quarters of the global demand for the precious metal, which has seen its value rise by around 45 per cent in the last 12 months alone.

The emancipation of women in previously archaic cultures has resulted in more women having higher levels of disposable income than before, which in turn has led to jewellery demand escalating to unheralded levels.

With certain important gold-buying seasons fast approaching in countries where gold sales far outweigh those in Western cultures, China and India for example, analysts are predicting gold prices to show more strong gains.

Christmas purchases will be preceded by the wedding season in India in September and October, as well as the mid-autumn festival in China, both of which are notably strong periods for gold sales in two of the world's most prestigious gold markets.

Recent political and regional tensions have also boosted gold's stock market value in recent weeks.

 

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