The Russia-Ukraine war hits the Italian gold industry just when it had recovered to pre-Covid levels. This is what emerged from a survey on the sector conducted by Intesa Sanpaolo andthe Goldsmiths Club, which brings together the most important companies of the Italian goldsmith industry, and presented at VicenzaOro.
The survey represents the first edition of the Club degli Orafi-Intesa Sanpaolo business survey and highlights, data in hand, the expectations, the main difficulties and the strategic trends of the Italian goldsmith companies active in both production and distribution. It is an investigation conducted before the Russian invasion of Ukraine but updated after the outbreak of the conflict.
Italian gold industry: a survey by Intesa Sanpaolo and the goldsmith club
The investigation shows that the gold sector, thanks to the economic rebound in 2021 (+6,5% of GDP) has recovered to pre-Covid levels and is "preparing to face the challenges of the war in Ukraine with good reactivity". The Istat turnover index also shows growth in gold and jewelery of over 50% in 2021, i.e. 17% above the levels of 2019, a figure "significantly higher than the manufacturing average (+9%) and above all other sectors of fashion”. Crucial was the recovery of competitiveness on international markets, with exports reaching an all-time record of 8,5 billion euros for gold and jewelery and 7,5 billion for gold jewelery alone, thanks above all to growth on all markets and in particular on the American market .
Gold industry: the effects of the Russia-Ukraine conflict
After the outbreak of the Russia-Ukraine war, around 78% of Italian goldsmiths interviewed feared the negative impact of the conflict which couldincrease in raw material prices while the price of gold is expected to remain at high levels, ie above 1.900 dollars per ounce also in the next two years. However, it must be considered that in 2021 Italian jewelery exports to Russia and Ukraine amounted to a total of 36 million euros, which is equivalent to 0,5% of total Italian exports.
Faced with the conflict, Italian goldsmith companies are preparing for significant organizational innovations, revising i supply channels but also price lists and sales channels with a high propensity to invest and particular attention to staff training, digitization and brand enhancement.
Goldsmith industry: comment by Stefania Trenti (Intesa Sanpaolo)
“The Italian gold sector - comments Stefania Trenti, Industry Research Manager of the Intesa Sanpaolo Studies and Research Department, which conducted the survey - showed in 2021 an extraordinary ability to react” with a sales boom that made it possible to fully recover the effects of the pandemic thanks to the “excellent competitiveness of Italian operators and the investments made in recent years to enhance the high level of know-how and creativity that has always characterized the sector in Italy". It is precisely these characteristics on which the goldsmith industry will aim to face the inevitable uncertainties now created by the war.
