Rising Demand for Gold Fuels Jewelry Exports in Tuscany
Demand for gold jewelry in inflation-stricken Turkey has significantly boosted jewelry exports from the Italian industrial area of Arezzo in Tuscany, data revealed on Monday. This surge in demand counteracted the decline in leather goods sales in the region near Florence.
According to a report by Intesa Sanpaolo, jewelry exports from the Arezzo region soared by 133% in the first quarter of the year compared to 2023. This remarkable growth was attributed to the high inflation rate of 61.8% recorded in Turkey in July.
Exports also climbed in two other prominent Italian jewelry regions, the Vicenza region (northeast) and Valenza Po in Piedmont.
Gold, widely recognized as a hedge against inflation and a safe haven during times of economic uncertainty, has been a driving factor behind this surge in jewelry exports.
The flourishing jewelry industry in Arezzo generated €1.8 billion ($2 billion) in exports during the first quarter, a notable increase from €800 million in the previous year.
While the global slowdown in demand for luxury goods has negatively impacted the Tuscan economy, with leather product exports from Florence dropping by 23% in the first quarter, jewelry exports have provided a much-needed boost.
Furthermore, olive oil exports from Tuscany experienced a remarkable 72% year-on-year surge in the first quarter.
exports from Italy‘s industrial areas witnessed a slight decline of 1.1%, but this was attributed to the easing of the global trade slowdown that began in the spring of 2023. Despite this, exports remained 20% higher than pre-pandemic levels.
The only exception to this growth was the export of intermediate goods in the fashion industry, which declined by 10% compared to the first quarter of 2019.