GFMS estimate that jewellery
production in Hong Kong used around 43 tonnes (1.38 million oz) fine
gold in 2001.
Although there is still
an active fabrication base in Hong Kong, this has been shrinking over the
past decade, and GFMS notes that it is possible that a substantial proportion
of the fabrication attributed to Hong Kong is actually been undertaken on
the mainland. Much of the production that has remained in Hong Kong itself
is of high end jewellery, in particular diamond set pieces, and most of the
factories using labour-intensive processes have moved to mainland China
to take advantage of cheaper labour.
Regular exports from
Hong Kong, which have grown strongly over the past decade, include re-exports
of gold jewellery made in China. Approximately one quarter of Hong Kong's
own production is earmarked for these exports. The US
is by far the main destination taking almost one half of the total. Other
leading markets
for Hong Kong jewellery are Japan, Switzerland,
Germany and the UK.
During the Asian crisis, many manufacturers turned to new markets particularly
in the US and Europe.
Gold and platinum on
sale in Hong Kong must carry a mark
of fineness as prescribed by the Government Customs & Excise Department.
All titles are admitted from 8 carat to 24 carat. However, in practice, around
70% of demand on the local market is for 24 carat chuk
kam, pure gold investment jewellery which is now also produced in modern
designs.
Harsh domestic economic
conditions in recent years have seen Hong Kong's consumption of jewellery
decline sharply. In 2001 GFMS estimate that only 27 tonnes (0.87 million oz)
of jewellery was consumed, compared with over 60 tonnes (1.93 million oz)
in 1997.
Established Hong Kong
retailers are facing keen competition from manufacturers that have integrated
vertically and opened chain stores in recent years selling trendy and low-priced
items for mass customers.
Jewellery
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