The OroArezzo fair opens, an international showcase of Made in Italy jewelery (350 exhibitors, 90% Italian, from 13 to 16 May present their collections in the city’s exhibition center) organized by the Ieg group, and the Arezzo district presents itself in dazzling form at the appointment with the buyers, revitalized by two years of good sales.
Exports in the sprint thanks to the Emirates and the USA
In particular, 2022 was the year of record growth for the historic Tuscan production hub, a leader with 1,000 companies, 8,000 employees and an export that accounts for 75% of turnover and which last year reached 3,175 million euros (30.8% of the national total), up 48% compared to pre-pandemic 2019: a performance that can only partially be explained by the price effect. The United Arab Emirates remain the first and undisputed outlet market for the Arezzo district (they absorbed 730 million euros in 2022), followed by the United States (400 million) and Turkey (364 million).
Price swings slow down growth
In 2023 the positive trend is continuing, in line with that of the Italian gold and jewelery industry (+11.5% turnover in the first two months), even if the study center of Banca Intesa Sanpaolo, which presented a report on district of Arezzo, expects a slowdown in growth. The only obstacle in the way of the Arezzo gold district is the fluctuating price of the raw material. For the third time in history, the price of gold in recent weeks has risen above 2,000 dollars an ounce (after finishing at 1,615 dollars last September), driven by the demand for safe-haven assets linked to economic uncertainties, and the forecasts for this year are not declining: the annual average of prices for 2023 – according to the Banca Intesa study center – will be 1,985 dollars an ounce. For this reason, the challenge now facing the Arezzo goldsmith companies will be to make the best use of the financial instruments to hedge the risk of fluctuations, which can shelter profitability that would otherwise be in the balance. «It is a favorable moment for the district – underlined Giordana Giordini, president of the Goldsmith and Jewelery section of Confindustria Toscana Sud (Arezzo, Siena, Grosseto) – despite the increase and the strong fluctuations in the price of gold».
Rising demand for investment gold
The prospect that prices will not fall – Banca Intesa explained – is also linked to the strong demand for gold that comes from central banks (in 2022 they absorbed 24% of world gold demand, with an exploit compared to 2021, and in the first quarter 2023 this trend has continued) which aim to diversify strategic reserves or to avoid sanctions, as in the case of Russia (gold is not among the products subject to sanctions). The return of gold as a safe haven has also led Banca Intesa to “dust off” an investment product intended for private individuals, which will soon be put back on the market, the bank’s managers announced.