China Focus: Gold jewelry among favored items for young consumers

HAIKOU, Sept. 5 (Xinhua) — In the Haikou International Duty-Free Shopping Complex, Ms Huang is choosing a gift for her friend.
“I came here to buy gold jewelry for my friend,” said the young woman, who is in her 20s. “I noticed that gold prices have kept rising this year, so I paid more attention to gold products.”
Huang was traveling around the tropical island province of Hainan when she visited the duty-free shop in the provincial capital, Haikou, to take advantage of preferential policies that mean the gold sold there is cheaper than the market price.
Gold prices rose significantly in the first half of this year. On Wednesday, according to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 569.8 yuan (about 80.26 U.S. dollars) per gram, 0.03 yuan higher than the previous trading day.
According to data released at the 2024 China Gold Congress in late July, China’s gold output in the first half of this year was 179.634 tonnes, and its gold consumption was 523.753 tonnes.
Rising gold prices have prompted many young consumers in China, the world’s largest gold producer and consumer, to buy gold accessories.
A report released by the China Gold Association in July suggested that in 2023, the “post-1990” and “post-2000” generations became the mainstream purchasers of gold jewelry in China. And favored gold products among consumers were pieces of fine jewelry made using ancient methods.
Chen, another customer, said that she started buying gold jewelry in 2017 as she “loves the quality and colors” of gold items.
“I prefer big brands such as Chow Sang Sang,” the 29-year-old said. “Now, gold prices are getting higher and I do feel like they have good value. I don’t plan to sell any of them.”
“Many young customers come to buy gold because they believe gold prices are generally stable, and that if they buy, the value will stay the same or even appreciate,” said Fu Qiaoqiao, a salesperson at the Lukfook Jewellery store in the Haikou International Duty-Free Shopping Complex, the world’s largest stand-alone duty-free store. She added that the preferential policies in Hainan have drawn even more people to the store.
Zhao Xingyu, another gold salesperson, said that in the past two years, increasing numbers of young people have come to buy gold.
“In particular, young couples who are preparing to get married tend to choose the ‘three golds’ for marriage,” said Zhao, referring to the three gold items traditionally required when couples marry in China: a pair of earrings, a necklace and a ring.
“Just a few years ago, their preference was diamonds,” Zhao added.
With the changes and upgrading of young Chinese people’s consumption concepts, they have gradually become the main consumers in society, said Kuang Xianming, deputy head of the China Institute for Reform and Development.
“Nowadays, young Chinese people’s basic and material consumption needs — such as food, clothing, housing and transportation — are met, but there is still large room for growth in other types of consumption, especially in services consumption,” Kuang said. “Gold can help preserve purchasing power against inflation.”
He said that the price of gold is likely to rise again in the long term. “There might be more potential buyers who will purchase gold as a form of financial management.” ■