The sixth edition of the was presented during a meeting hosted by VicenzaOro.economic survey realized by Goldsmiths Club Italy, in collaboration with the Research Department of Intesa SanpaoloThe investigation offers adetailed analysis of the gold sector, integrating and enriching the official statistics. For the first time, the current edition also includes a questionnaire dedicated to sustainability, focusing on the ESG (environmental, social and governance) measures adopted by companies in the sector.
The survey was conducted between May and June 2024. The main objective was to collect operators' expectations for 2024 in terms of turnover and investments, and to analyze the competitive challenges of the sector.
Gold sector: turnover increase expected
Expectations among operators in the gold sector are positive, confirming stability after the brilliant results of the last two years. About a third of participants predict a increase in turnover, up from 28% recorded at the end of 2023. This trend is confirmed by system data: in the first half of 2024, thegold sector turnover index grew by 4,0% at current prices, contrary to the decline recorded in other sectors such as fashion (-8,4%) and manufacturing (-3,4%).
The gold sector has demonstrated a remarkable capacity for resilience and growth, with an increase in exports of 63,3% in value and 15,6% in quantity in the period January-May 2024, reaching 6,6 billion euros. Turkey confirmed itself as a key market, with total jewelry exports of €2,6 billion. This increase is partly attributable to the strategy of buying gold as a measure to counter the country's high inflation.
Investments and innovations
The survey highlighted that 29% of companies foresee a increase in investment compared to the previous year, with peaks of 42% among the largest companies. Manufacturing companies are encouraged to invest in new technology (27% of respondents), while commercial companies tend to focus on strengthening your image (56%). Investment prospects remain optimistic, supported by favourable monetary conditions and increasing availability of capital.
Growing attention to sustainability issues
La sustainability has emerged as a growing priority among companies in the gold sector. Separate waste collection is a prevalent practice, adopted by 77% of manufacturing companies and 95% of commercial companies. Among manufacturing companies, 59% are working to reduce packaging and 55% to reduce hazardous materials. In addition, 55% of companies hold specific certifications, With the RJC certification (Responsible Jewellery Council) which is the most widespread.
In commercial sector, in addition to the reduction in paper consumption (57%), the adoption of sustainable packaging is significant (52%). More than half of companies (57%) have noticed an increase in customer interest in sustainability issues after 2019. However, sensitivity to these issues is not yet uniform among customers (higher among young people with 76%), with only 62% of companies perceiving insufficient general awareness. Sustainability is seen as strategic for 50% of gold manufacturing companies, while 32% consider it an additional cost.
The impact of Rjc certifications
From the analysis of the balance sheet data it emerges that the RJC certified companies perform better than the rest of the sample. Between 2019 and 2022, these companies show a median turnover growth of 45%, compared to 19% for the others. Furthermore, the profitability of certified companies is higher, with a difference of about 4 percentage points in the EBITDA margin and a higher productivity, measured in added value per employee (68,8 thousand euros compared to 43,7). The profitability and productivity gap between certified and non-certified companies has further widened between 2019 and 2022.
“The current year is continuing the good performance of the Italian gold sector already noted in previous years: in the first half of 2024, turnover growth stood at 4,0%, in contrast to the fashion system (-8,4%) and Italian manufacturing (-3,4%)” commented Sarah Righteous, Economist Research Department Intesa Sanpaolo. “Once again, Italian goldsmithing has been rewarded for its high competitiveness on foreign markets: with 6,6 billion euros in the period January-May,exports grew by +63,3% in value and by 15,6% in quantity, also supported by contingent and probably temporary factors (such as the surge in shipments to Turkey). Looking ahead, despite a complex and highly uncertain context, the sector should to benefit from the progressive reduction of inflation, from the fall in the prices of energy raw materials and from the introduction of less restrictive monetary policies already started in the Eurozone. Goldsmith companies are ready to seize the opportunities offered by the market, also through more investments, aimed at introducing technology into the company, strengthening the corporate image, focusing on sustainability, with significant returns in terms of competitiveness.”
“The survey of entrepreneurs' sentiment carried out between June and July 2024 highlights how the sector continues to hold up well, with a third of respondents expecting further growth in turnover compared to the previous year, despite the complexity of the global scenario,” he explained. Cristina Squarcialupi, President of the Club of Goldsmiths Italy. “We expect, for the second half of the year, a perhaps a more cautious attitude but without drastic changes of direction. The real issue remains the fear of a possible drop in demand, a concern shared by two-thirds of entrepreneurs. It is interesting to note that, despite the high and constantly growing price of gold, this does not seem to particularly scare operators. The propensity to invest remains solid, especially among large companies, but even smaller companies demonstrate a certain desire to grow in this direction. The push is mainly dictated by theevolution of demand, from competitive pressure and the need to strengthen its image. For this edition we wanted to put the spotlight on sustainability theme, asking entrepreneurs about their perception on the topic. It is not surprising that medium-large companies feel more involved, with an average number of sustainable measures adopted higher than that of micro-small ones. However, it is worrying how many companies still consider sustainability an extra cost, and how training on this topic is lacking.”
