Global sales of gold jewellery last year plunged to a two-decade low as high prices and the economic crisis drove away cash-strapped consumers from the market.

Worldwide demand for gold items such as necklaces, rings and bracelets fell to 2,158 tonnes, down 10.2 per cent from 2007 and the lowest since 1989, according to a report released on Tuesday by GFMS, the precious metals consultancy. Excluding the recycling of scrap in the jewellery sector, the drop was almost 20 per cent.