Business

Wednesday July 29, 2009

New trend in jewellery sector

By DAVID TAN


Murano and Austrian crystals in demand due to high gold price

GEORGE TOWN: Selling Murano and Austrian crystal has become a popular business trend in the gold and jewellery industry.

Murano jewellery is made of glass from the Venetian island of Murano, located about a mile north of Venice, while Austrian crystals are man-made crystals from Austria.

Their popularity is because the high prices of gold, presently fixed at about US$950 per ounce against US$750 per ounce a year ago, have caused the gold and jewellery business to drop.

Penang Goldsmith Association chairman Joeson Khor said domestic sales had fallen by 40% to 50% since the economic recession started last October.

Joeson Khor expects sales of plain gold and cubic zirconia jewellery to improve

“Some 12 months ago, the export of the country’s gold and jewellery per month was about four tonnes of plain gold and cubic zirconia (known also as Russian gemstones) jewellery sets worth about RM500mil.

“Presently, monthly export is about 2.5 tonnes with an estimated value of RM260mil.

“About 85% of the export sales are generated by Penang Goldsmith Association members he said, adding that there were 680 members in the association.

The slower sales prompted association members to resort to selling Murano beads and bracelets and Austrian crystal jewellery sets, which were more affordably priced, he said.

An average Murano bracelet laced with silver is priced at about RM500 while an silver-laced Austrian crystal ring sells for about RM300.

“They can be competitively priced because raw materials such as silver can be sourced at a good price from China and Thailand.

“These Murano and Austrian crystal jewellery sets are selling well in the domestic market and overseas in the US and Europe,” Khor said.

Moving forward into the third and fourth quarters, Khor said he expected the sales of plain gold and cubic zirconia jewellery to improve.

“The market demand should come from oil exporting countries in the Middle East as the price of oil has gone up,” he said.

  • E-mail this story
  • Print this story