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Gold jewellery stores have exceeded 90 USD/gram.

October 12, 2023

At the end of last year, the price of jewelry gold was less than 500 yuan. It is understood that in March this year, due to various factors such as geopolitical conflicts, the price of gold continued to rise. Multiple gold store sales have indicated that jewelry gold exceeding 600 yuan is within the forecast.


With the rising price of gold, what is the sales situation of gold stores? A reporter from Financial Investment News is exploring this issue.


On September 19th, a reporter from Financial Investment News visited multiple gold stores in Chengdu on site. The price of jewelry gold at Chow Tai Fook on that day has reached 608 yuan/gram, and there are many people in the store. According to the salesperson, the price of gold has recently risen rapidly and sharply. Since the single gram price increased by 600 yuan, customers have decreased significantly.


The same applies to other stores. On the 19th, the gold price of Zhou Dasheng's jewelry was also 608 yuan/gram, but there was a full reduction activity. After calculating it, it was 558 yuan/gram, and the single gram price was 50 yuan lower than that of Zhou Dasheng. On the same day, Zhou Shengsheng's gold price reached the highest, reaching 614 yuan/gram.

Perhaps due to weekdays or the impact of rising gold prices, the three gold stores mentioned above have few doors and far more sales than consumers. The cold shops stand in stark contrast to the bustling Chunxi Road.


According to several sales representatives, although there are generally fewer customers, ancient gold is highly sought after.


The overall appearance of ancient gold looks antique, with a matte finish, and the craftsmanship is better and more detailed. Nowadays, many people like it, "said a staff member at Chow Tai Fook. The best-selling product in the store is an ancient French bracelet, priced at around 7000 yuan, which is relatively expensive. It is reported that due to the complex craftsmanship of ancient gold, the manual fees are also relatively high.


The rapid acceptance of ancient gold by young people is inseparable from the promotion of film and television works and celebrities. For example, Zhou Dasheng co starred in the TV drama "Please Prince" to launch the ancient golden bracelet; The summer blockbuster "everlasting longing for each other" often shows the shadow of ancient gold, which is deeply loved by drama fans; The ancient golden gourd often worn by well-known artists on their chests has become a recent hit, attracting many consumers to purchase.


However, the reporter learned that the preservation of gold is only related to its purity, and it has nothing to do with ancient or modern gold.


Obviously, a gold price exceeding 600 yuan means that the price is already at a high level. Generally speaking, the rise in gold prices is a favorable factor for gold recycling, which may stimulate some people to choose to sell gold jewelry for profit. The reporter noticed that in this situation, the demand for gold recycling in the market has increased.


According to media reports, there is a continuous flow of people at the gold recycling counter in the Shenzhen Shuibei Market. Several Shenzhen Shuibei gold recycling merchants have stated that in the past one or two months, the monthly recycling volume has increased by approximately 20%, which is the highest price in their history. Many consumers buy for less than 400 yuan and now sell at high prices, or convert it into their favorite accessories. Even consumers sold their gold overnight.


So, is this a good time to sell gold? Industry experts interviewed by Financial Investment News stated that the recycling market is influenced by supply and demand relationships and other factors, and it cannot be judged whether it is a good time solely based on price increases.


For example, it is necessary to consider personal financial needs. If investors urgently need funds, no longer need to hold gold jewelry, or believe that gold prices are approaching or reaching a high point, they may consider gold recovery. However, if investors hold gold jewelry as a long-term investment, it is recommended to have a longer investment perspective and not only focus on current price fluctuations. As a safe haven investment tool, gold's value may be in the economy and geopolitics Significant fluctuations occur under the influence of factors such as governance The industry insider stated that.


A reporter from Financial Investment News noticed that although the spot price of gold in Shanghai has also increased compared to the rapidly increasing jewelry gold, the magnitude is far less than that of jewelry gold. Compared to international gold prices, domestic jewelry gold has seen a greater increase.


The co founder of the Spread Planet APP, You Xi, stated in an interview with a reporter from Financial Investment News that the inconsistency between the increase in jewelry gold and international gold may be due to multiple factors. Firstly, the supply and demand relationship in the domestic market may differ from that in the international market, resulting in inconsistent price fluctuations; Secondly, factors such as domestic market policies and taxes may also have an impact on prices; In addition, factors such as exchange rate fluctuations and market expectations may also lead to differences in domestic and international gold prices. Therefore, it is a normal market phenomenon for jewelry gold prices to differ from international gold prices.


According to the latest statistics from the China Gold Association, in the first half of 2023, a total of 244 tons of gold were produced nationwide, a year-on-year increase of 5.93%; In terms of consumption, the national gold consumption in the first half of the year was 554.88 tons, a year-on-year increase of 16.37%. Among them, gold jewelry consumption reached 368.26 tons, a year-on-year increase of 14.82%; The consumption of gold bars and coins reached 146.31 tons, a year-on-year increase of 30.12%.


Jinyuan Futures believes that the current phased adjustment of precious metals has not yet ended. The recent trend of gold and silver prices has been weak externally and strong internally, with the price difference between the internal and external markets continuing to widen to a new historical high. Last Friday, domestic gold and silver prices surged and rebounded, leading to a certain rebound in external gold and silver prices. There are signs of a return in the price difference between the internal and external markets, and it is expected that the price difference between the internal and external markets may continue to narrow this week.


Funeng Futures analyzed that the Mid Autumn Festival and National Day long holidays may catalyze the demand for wedding celebrations or drive the sustained release of demand for gold jewelry, coupled with the resonance of factors such as hedging demand caused by the depreciation of the RMB, and the short-term Shanghai Gold Exchange may be stronger. At present, it is possible to allocate bottom positions on dips and wait for the Federal Reserve to passively initiate a rate cutting cycle. Gold may have a long-term upward trend.



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