GFMS Says Gold Jewelry Fabrication Declined in India, China

Gold jewelry fabrication dropped 11 percent in India last year because of higher prices and import taxes and declined in China for the first time in nine years, researcher Thomson Reuters GFMS said.

India’s jewelry fabrication slipped to 593 metric tons, the London-based researcher said today in a report. Recycling in the country more than doubled to a record 132 tons. Jewelry fabrication in China declined less than 1 percent to 495 tons last year, GFMS estimates.

While gold’s high last year in dollars was 6.5 percent below the all-time high set in 2011, the metal reached a record priced in rupees in September, data compiled by Bloomberg show.

“Higher gold prices in rupee terms, the lack of a clear price trend for certain periods, a patchy monsoon and the introduction of new taxes” cut demand, GFMS, a unit of Thomson Reuters Corp., said in the report. “A lack of clear price trend, coupled with a slight slowdown in economic growth, also undermined Chinese fabrication.”

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