The total value of exported gold jewellery products from Malaysia is expected to increase to between RM4.25bil and RM4.5bil this year, compared with RM3.8bil in 2010 due to lower pricing of gold and the forthcoming Christmas holidays.

Penang Goldsmith Association (PGA) chairman Joeson Khor toldStarBiz that the price of gold was presently around US$1,730 per ounce, compared to US$1,900 per ounce at the end of August.

“With pricing stabilising at around US1,730 per ounce and the demand for gold jewellery products for the Christmas festive season, we can expect the annual gold jewellery export figure to hit between RM4.25bil and RM4.5bil.

“Since August, the monthly value of gold jewellery product exports hovered around RM354mil, compared to RM322mil per month for the same period a year ago.

“The present pricing will attract more orders from overseas gold jewellery wholesalers in Japan, the United States, Germany, and Canada who are ordering to meet the demand for the Christmas holidays,” Khor said.

Besides the UAE, which consumes over 90% of Malaysian gold jewellery export, countries like Japan, the United States, Germany, and Canada are also importing more Malaysian gold jewellery products.

Gold jewellery exports to Japan increased to RM46.8mil for January-August this year, compared to RM42mil exported for the same period last year, while to the United States, the export volume rose to RM17.9mil for the 8 months of 2011, compared to RM16.7mil in the same corresponding period of 2010.

The other key market is Germany which imported RM8.6mil during the January to August period, compared to RM4.5mil in the last corresponding period.

UAE’s consumption of Malaysian gold jewellery products for the 8 months of 2011 dropped about 1.9% to RM2.6bil from RM2.65bil.

From January to August 2011, according to the latest Malaysia External Trade Development Corp report, the value of exported gold jewellery was RM2.8bil, a slight increase of 1.1% from RM2.79bil in the same period a year ago.

On gold jewellery product import into the country, Khor said the volume of imports had increased substantially to RM356mil for the 8 months of 2011, compared to RM68mil in the same period of 2010.

“This has increased competition among local gold jewellery product retailers, leading them to reduce labour charges.

“This enables retailers to price their gold items more competitively in the market,” he said.

Due to the fluctuation in gold prices, many local and overseas gold jewellery retailers have ventured into selling silver-laced cubic Zirconia jewellery, which resembles gold jewellery items.

“This trend is catching up, especially in the United States, as silver prices are more affordable,” he said.

Silver prices currently hover at US$33 per ounce compared to US$31 per ounce a month ago.

Silver was priced lowest at US$20 per ounce in January, and rose to its peak of US$48 per ounce in April.

Next January, the Penang Goldsmith Association will travel to Mumbai to visit the gold jewellery retailers and manufacturers and the India International Jewellery Show.

“The purpose of the trip is to promote bilateral trading,” he said.–The Star