1 / 16

INDEPENDENT, INFORMED & INTERNATIONAL GFMS Limited – Precious Metals - Paul Walker CEO

Precious Metals & Jewellery Who needs Who? Dr Paul Walker 3 rd Dubai City of Gold Conference Dubai, 21-22 February 2005. THE GFMS GROUP. INDEPENDENT, INFORMED & INTERNATIONAL GFMS Limited – Precious Metals - Paul Walker CEO GFMS Metals Consulting Ltd – Base Metals – Neil Buxton Director

berit
Download Presentation

INDEPENDENT, INFORMED & INTERNATIONAL GFMS Limited – Precious Metals - Paul Walker CEO

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Precious Metals & JewelleryWho needs Who?Dr Paul Walker3rd Dubai City of Gold Conference Dubai, 21-22 February 2005

  2. THE GFMS GROUP • INDEPENDENT, INFORMED & INTERNATIONAL • GFMS Limited – Precious Metals - Paul Walker CEO • GFMS Metals Consulting Ltd – Base Metals – Neil Buxton Director • GFMS Mining and Exploration Limited – Richard Napier Director • GFMS Analytics Limited – regular analysis of all the metals markets but focus on precious - Rhona O’ Connell Director • Coming soon, GFMS Consumer Research Limited – focus on consumer research covering the jewellery and investment markets.

  3. 17 Analysts + Consultants; full-time representation in UK, India, China, Australia & Russia.Not just desk-based: Over 40 countries visited in the last 12 months. More than 7,000 meetings since 1996.Annual Gold, Silver and now also Platinum & Palladium Surveys GFMS’ Unique Research Capabilities & Programme

  4. Presentation Outline • Historical relationship between jewellery demand and metal supply • Who are making the money? – a look at the value chain • Important macro trends for jewellery • Conclusions

  5. Jewellery demand as a proportion of total supply in 2004* *Based on GFMS preliminary 2004 data

  6. The value of metal used in jewellery in 2004* *Based on GFMS preliminary 2004 data

  7. Jewellery – global market size?

  8. Jewellery Demand 24,500 tonnes Mine Output 13,000 tonnes Gold: jewellery & mine output - An historical perspective

  9. Gold jewellery & mine supply *Based on GFMS preliminary 2004 data

  10. Mine Output 93,000 tonnes Jewellery Demand 98,700 tonnes And for silver? – demand covers supply…

  11. Mine Output 430 tonnes Jewellery Demand 330 tonnes What about Platinum?Well, nearly the same story…

  12. Average prices over the same 20 year period * US Dollar Major Currency Index – base year 1973 = 100

  13. China- Jewellery Margins(Fabricator)(Basis US$860/oz and US$411/oz metals prices)

  14. China- Jewellery Margins(Retailing)(Basis US$860/oz and US$411/oz metals prices)

  15. But does the jewellery industry need support? Competition for Jewellery • technology goods • travel • luxury consumer goods • other new products Mega trends • women’s earning power • men’s jewellery • age at marriage • leisure hours • investment background • Demographic changes

  16. Precious metals & JewelleryWho needs Who? • All metals have relied upon jewellery demand to soak up increased mine supply. • Jewellery as a ‘spend’ category is under threat. • Marketing expenditure does not appear to be coordinated nor monitored. • More strategic, independent research on the jewellery sector is needed. Some Conclusions

More Related