China, the world’s largest consumer of gold, is experiencing a sharp rise in gold jewelry retail prices as global gold prices reach a two-month high. Major Chinese jewelry retailers, including Chow Tai Fook, Luk Fook Jewellery, and Lao Feng Xiang, have reported that gold products are now priced between 834 yuan and 836 yuan per gram (approximately 114.45to114.75).
On the international market, gold prices have also climbed significantly. The New York Mercantile Exchange recently recorded gold prices at 2,770perounce,whileLondongoldpricessurpassed2,763 per ounce.
Despite a brief dip below 800 yuan per gram last month, China’s gold jewelry prices quickly rebounded. However, the sustained high prices have dampened consumer demand. According to the China Gold Association, gold prices rose consistently throughout the first three quarters of last year, leading to an 11.2% year-on-year decline in jewelry consumption, which totaled 741.7 tons. Gold jewelry consumption alone fell by 28% to 400 tons.
In contrast, sales of gold bars and coins, often purchased as a store of value, saw a 27% year-on-year increase, reaching 282.7 tons in the nine months ending September 30.
The challenging market conditions are also affecting jewelry retailers. Chow Tai Fook’s latest unaudited operating data revealed a 14.2% drop in retail sales last quarter. Sales in mainland China fell by 13%, while markets in Hong Kong, Macau, and other overseas regions saw declines exceeding 20%.
As gold prices continue to rise, the jewelry industry faces ongoing pressure to balance retail pricing with consumer demand.
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