Deals involving gold saw an average 10% increase over the last few years. Over one tonne of jewellery is sold monthly in Romania, bringing the average sale per capita to less than one gramme.
Romanians purchased gold worth over 240 million euros last year, with over 15 tonnes of gold jewellery being sold, according to Mihai Pacioianu, first vice-president of the Federation for Precious and Semi-Precious Metals and Stones Diamond-Gold (FMPPS-DG), an association which includes 2,000 trading companies that deal in precious metals and stones.
"Deals involving gold went up 10% on average, over the last few years, with around 15 tonnes of gold jewellery being sold on the Romanian market last year," said Mihail Pacioianu. He also said the price of gold jewellery increased by around 40% last year against 2006, when one gramme of gold was sold for around 50 RON.
"Whereas in 2006, the price of a piece of jewellery was of around 50 RON per gramme of gold, in 2007, the price reached almost 70 RON," he added.
Mihail Pacioianu specified that the price of gold would continue to rise, which would attract a larger number of investors in gold. "The number of those who deal in gold has seen a significant rise, due to the fact that investors are seeking to place their money in safer deals, and gold is such an investment, given the instability of the dollar," he added.
The increase in the price of gold brings gains to those who produce and extract large amounts of gold, to pawn shops, which have access to precious metals, and to those who hold large amounts of gold, according to Mihail Pacioianu.
He added that gold jewellery accounts for 90% of the gold traded on the Romanian market. "In Romania, there are currently around 5,000 trading companies authorised to trade precious metals and stones and 200 local manufacturers," specified Mihail Pacioianu.
Local gold manufacturers are the most affected by the increase in the price of gold, as they have to deal with the increase in the price of imported materials and with the decline in the buyers' purchasing power. "Local manufacturers accounted for just 5% of the amount of jewellery sold in Romania, with the remaining 95% being imported. They are the most exposed to the negative effects of the increase in the price of the raw gold," specified the first vice-president of FMPPS-DG.
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