Tuesday, May 23, 2006

 Italy's Gold Jewelry Dominance Threatened

The ANNOTICO Report

 

Italy used to dominate the world's gold jewelry manufacturing sector but has been recently overtaken by India, with China and Turkey also closing in, with lower labour costs

 

 Italian jewelers must now focus on high-end, top-quality products.

 

ITALY'S JEWELRY 'MUST SHINE"

 

The New Zealand Herald

 

From Reuters

Wednesday May 24, 2006

 

VICENZA - Italian jewelers have been told they must focus their efforts on high-end, top-quality products to stay ahead of foreign competitors who are benefiting from lower labour costs, as the price of raw materials soars.

 

Italy used to dominate the world's gold jewelry manufacturing sector but has been recently overtaken by India, with China and Turkey also closing in.

 

"What our manufacturers have to do is to get rid of products with low added value which could be produced in the countries with low labour costs," said Valentino Ziche, chairman of Vicenza Gold Fair, a global showcase for the latest industry trends.

 

"We must make a leap in quality and produce beautiful things of high value, distinguishable from those made, say, in Turkey," Ziche said at the fair.

 

According to British-based GFMS precious metals consultancy, Italian gold jeweler's output fell 10 per cent to 275 tonnes in 2005, its lowest level since 1988, while gold manufacturing in India, China and Turkey increased.

 

Italy's leading metal bank, Italpreziosi, estimates gold jewelry output in the country has fallen some 30 per cent so far this year, hit by high and volatile gold prices. It expects further falls if gold prices do not stabilise.

 

"A 30 per cent fall is a lot. But it does not scare me if the 30 per cent fall in volume is compensated by a 30 per cent increase in the value of sales," Ziche said.

 

Gold prices have been highly volatile, falling 10 per cent last week, but hitting a 26-year high of $US730 ($1170) per ounce on May 12. Silver prices have nearly doubled since the end of November.

 

 

 

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