As gold prices hit record highs, the market is experiencing a dual surge in jewelry production and buyback activity. Consumers are trading in old gold for new designs, while investors are selling their holdings to profit from the price spike.
In Nanjing, the capital of Jiangsu Province in eastern China, goldsmiths are working at full capacity to meet rising demand. Shops are melting down old gold and crafting it into intricate new pieces. Services like exchanging old gold for new designs and creating custom jewelry are in high demand, with processing fees ranging from 10 to 15 yuan per gram.
One customer shared, “I booked my appointment over a week ago. My old gold jewelry was damaged, so I decided to melt it down and turn it into a new bracelet.”
A similar trend is unfolding in south China’s Guangxi Zhuang Autonomous Region, where customers are also exchanging their gold for new pieces. Many see the high gold prices as an opportunity to repurpose their gold into wearable art.
“With gold prices so high, now seems like a good time to make jewelry and put my gold to better use,” said another customer.
Beyond jewelry making, many consumers are cashing in on the gold rush by selling their gold back to banks. Since the beginning of the year, gold prices have risen by more than 11 percent, with international prices nearing $3,000 per ounce. This has led to a significant increase in gold bar buybacks at banks, with activity far surpassing last year’s levels.
However, despite the thriving gold recycling market, merchants remain cautious about the future. With gold prices still volatile, many are speeding up inventory turnover and reducing stock to mitigate risks.
The gold market’s current dynamics highlight a mix of consumer enthusiasm and investor opportunism, driven by record-breaking prices. Yet, uncertainty about future price movements keeps the industry on its toes.
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