Gold in luxury goods

AngloGold, South Africa’s largest gold producer, is urging the luxury goods sector not to discount gold in the fight for discretionary spending, which in the U.S. accounts for US$174 billion.

Speaking in Paris at a conference called “Luxury Unlimited,” AngloGold spokesman Sarah DaVanzo outlined how the company is working with luxury businesses to create product lines aimed at design-conscious consumers.

She said jewelry sales per square foot are higher than those of apparel and accessories. In the U.S., jewelry is the largest product category of discretionary spending, at around US$40 billion annually, with gold accounting for US$7 billion of this amount.

Research by AngloGold indicates that almost a quarter of brand-buying consumers prefer gold, but those surveyed said most jewelry designs using gold lack style.

With modern technology, this no longer needs to be the case.

“Recent innovations in manufacturing methods, gold technologies and creative design enable gold to be fashioned to suit any design or brand profile,” said DaVanzo. “Through specific applications of gold technologies, proprietary jewelry ‘looks’ can be developed, deterring imitation and copyright infringement.”

She added that 90% of American women own gold; thus the opportunity to move consumers from generic gold to branded, designer gold jewelry is significant.

AngloGold’s market development activities have focused on the fashion and design aspects of gold. In its Afridesia project, AngloGold worked with three leading South African designers to create a range of gold jewelry and accessories to complement their latest fashion ranges for a public show.