Gold jewelry remains one of the top three most popular items for women’s discretionary spending in the U.S., according to a World Gold Council survey.
Survey findings “reveal that gold jewelry in the U.S. has continued to maintain its appeal despite a squeeze on women’s spending power, a volatile and rising gold price, and increased competition from other consumer goods, which was already evident in April when the research was conducted,” WGC said in a statement.
What Women Want: Global Discretionary Spending Report, conducted by independent research firm, GfK, polled 1,068 American women aged 16 to 65. The study was also run in the key gold jewelry markets of India, China, Saudi Arabia, Italy, and Turkey. The survey was last conducted in 2005, in which it examined the attitudes of nearly 7,500 females, aged between 15 and 65, toward luxury items and consumables, exploring their views on product attributes, price and competition for discretionary spend.
In the U.S., gold jewelry maintained its position as the third most popular item chosen by a woman spending her discretionary income on herself, according to the survey. It currently ranks below spending on ‘short breaks’ and ‘increasing savings’ but above such spending choices as a “meal at a nice restaurant” or “beauty/spa treatment.”
According to survey results, those who noticed the increasing price of gold over the past 12 months were most likely to agree that the current price reassured them of the value of their gold jewelry. In the U.S., 68 percent of consumers who noticed a price increase said that it reassured them that “What I buy and own is valuable,” while 67 percent said “gold jewelry is a good investment.”
“In the context of a rising gold price, which reached new heights in early 2008, it was important that the survey focus on how the gold price may impact consumer attitudes and spending behavior,” said John Calnon, WGC managing director – Americas. “It is encouraging that gold’s price increase has re-emphasized the value of gold as an investment, as well as a fashion item, and has actually made it more desirable. This research has helped us to shape appropriate consumer messaging that will continue to build gold’s desirability during turbulent economic times.”
The survey, last conducted at a gold price point of $444/oz – compared to 2008’s average of $897/oz – showed that if given $1,000 to spend, the number of women who would spend it on gold versus other products in 2008 (38%) was only four percentage lower to the number of women who would spend around $500 in 2005 (42%). This is evidence that the rising price has not eroded the desirability of gold jewelry for women who have the discretionary spend available to make purchases.
The survey also showed that while the ownership of gold has increased among those interviewed in the U.S., with 94 percent owning gold jewelry compared to 90 percent in 2005, the main competition for consumer discretionary spending does not come from other fine jewelry. Rather, it comes from other “must have” fashion accessories and gadgets such as mobile phones and other personal electronic goods. Ninety-six percent of women surveyed own mobile phones or personal electronics, up seven percent from 2005.