Generally, as the countries wealth augments, so does the wealth of their population. The result of these is an increase in the middle class segment that has a lot of cash to spend around. China and India are hungry for more jewelry due to the fact that their middle class population is increasing by the day. According to statistics, the wealth of these two countries has been rising exponentially over the last few years.
In effect, the Chinese are currently the world's fastest growing economy. Statistics show that these two countries account for about forty five percent of gold and diamonds market world wide. The chief reason for this being that their populations have a lot of ideal money they are willing to spend freely on such products.
In India, Gold jewelry is mainly bought during festive seasons like Diwali and also during weddings. Generally, this two functions account for a huge percentage of the total sales in this country. Apart from this fact, other people buy precious stones and metals to store value in their capital as they anticipate the prices to go up in future.
With Chinese loosening it's laws on communism, it is becoming easy for free trade to take place in that country. A few decades ago, a citizen in China was not allowed to own any precious metals or stones. Loosening of these laws to some extent has opened up the Chinese market.
These 2 countries are some of the most populated places on earth. In effect, this would mean that these two countries have some of the biggest middle class population in the world. An increased appetite in purchases on precious stones and metals would mean that these 2 countries would be a significant buyer.
Generally, precious metal and stones appreciate by the same rate as inflation. To guard their capital, people are buying diamonds and gold as a means of wealth preservation. By the large, China and India are hungry for more jewelry; this to a huge extent has forced the prices of diamond and gold to sky rocket due to the high demand.
In effect, the Chinese are currently the world's fastest growing economy. Statistics show that these two countries account for about forty five percent of gold and diamonds market world wide. The chief reason for this being that their populations have a lot of ideal money they are willing to spend freely on such products.
In India, Gold jewelry is mainly bought during festive seasons like Diwali and also during weddings. Generally, this two functions account for a huge percentage of the total sales in this country. Apart from this fact, other people buy precious stones and metals to store value in their capital as they anticipate the prices to go up in future.
With Chinese loosening it's laws on communism, it is becoming easy for free trade to take place in that country. A few decades ago, a citizen in China was not allowed to own any precious metals or stones. Loosening of these laws to some extent has opened up the Chinese market.
These 2 countries are some of the most populated places on earth. In effect, this would mean that these two countries have some of the biggest middle class population in the world. An increased appetite in purchases on precious stones and metals would mean that these 2 countries would be a significant buyer.
Generally, precious metal and stones appreciate by the same rate as inflation. To guard their capital, people are buying diamonds and gold as a means of wealth preservation. By the large, China and India are hungry for more jewelry; this to a huge extent has forced the prices of diamond and gold to sky rocket due to the high demand.
About the Author:
Lumiere Diamond Co. offers high quality Diamond Stud Earrings and Engagement rings at wholesale prices. We also offer Diamonds as an Investment with rare Investment Grade Diamonds.
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