Perhaps because of the cultural significance of gold in India, this country tend so be a meter for others in the gold and jewelry industry. Seems like they are going through a little gold slump right now according to the article, Gold jewellery demand dips:

Indian women are no longer dipping into their grandmas' jewellery box to get inspired for buying gold. Platinum, diamonds and rubies for them apparently shine more.

According to the latest report released by London-based precious metal consultancy GFMS, India saw a 90 tonne drop in demand for gold jewellery in 2006.

The fall in gold demand was not limited just to India. The report states that World jewellery fabrication demand fell 16 per cent to a 15-year low of 2,280 tonnes in 2006.

GFMS report further adds that the demand for gold jewellery worldwide in 2007 is expected to decline further with India been no exception.

"Globally, gold demand was affected due to a shift toward lower gold weights and more gem-set ornaments. This led to the fall in jewellery segment," says Philip Klapwijk, executive chairman, GFMS.

Though jewellery houses refuse to accept that the demand for gold jewellery is coming down, they do agree that the demand for stone-based jewellery is on the rise.

Besides the increase popularlity of gemstone jewelry, I have to also wonder about the trend in platinum we continue to see.