In the past year 2013, Gold price has been going low from USD1723.09 per ounce at the beginning of the year to USD1184.50 per ounce in the year end, sterling silver price also fall from USD33.80 per ounce to USD18.80 per ounce. While at the same time, prices of color gemstones and semi precious stones still on the rising.
The floating of gold prices stimulate the purchasing desire of jewelry consumers and gold investors, each time of price of gold going down, there are plenty of consumers buys gold jewelry, and you can often see a long waiting line on the street at the goldsmith and gold jewelry store. China is a big consume market of gold jewelry, especially yellow gold jewelry. Consumers by their engagement wedding ring, earrings, necklaces, bracelets and bangles for important occasions. And also, people buy gold jewelry as gifts and presents to presents, friends and children. We expect the gold jewelry consumer market will go on rising and expanding in the new year 2014. We guess the gold price will go to nearby $1000 per ounce in 2014, which will largely incentive gold jewelry consumption.
For sterling silver jewelry, with the decrease on the raw material price of silver, sterling silver jewelry prices are acceptable by more and more young consumers, and silver jewelry are much more fashion and designer styles compared to gold jewelry. Now silver price is $20.20 per ounce, we guess in the year 2014, silver price might go down to $15 per ounce. Which will reach the lowest within recent 5 years. So the cost of silver jewelry will be lower, despite the labor cost on the rising, which can be partially be absorbed.
As jewelry making is a typical labour-intensive industry, most of the work are hand crafted, in the recent years, labor cost are increased sharply, and the daily life consumer goods prices are continuous rising, this will inevitably push the cost and prices going higher for the jewelry prices and jewelry market.
Well, for the export market, our tradition main market US market and European market orders not repeat as regularly and large volume as before, but emerging market in South America, such as Brazil, Chile, and Mexico, Russia and Thailand, is coming up swiftly to occupy the order and customer portfolio. We expect and forecast the emerging market will continue growing rapidly in the year 2014.
Anyway, we can see that United states and European market are recovery obviously, which shows in the stock market, and industrial index, so we believe our traditional market in these 2 largest area in the world will boom up again. So we are optimistic for year 2014.