Fueled by attractive promotional activities, China’s gold consumption market experienced a boost during the five-day Labor Day holiday, even as the international gold prices remain elevated.
The global gold price hit record highs 20 times in the first quarter of this year, according to a recent report from the World Gold Council.
As a result, global consumption of gold jewelry fell by 21 percent year on year, marking the lowest level since 2020.
In contrast, the demand for gold investment surged, with global investment reaching 551.9 tons, a remarkable 170 percent increase compared to the previous year.
This indicates that while gold prices have reached historic highs, the global demand for gold jewelry has declined, leading more investors to view gold as an attractive investment option.
A shopping mall in central China’s Wuhan City saw consumers’ demand for gold investment soar in the three days leading up to the holiday, with sales of gold bars and coins nearly tripling.
“As gold prices have fallen, we have launched various promotional activities and experienced a remarkable surge in overall sales,” said Cui Jiwang, the person in charge of gold and jewelry counters at the shopping mall.
“We conduct live streaming promotions online to showcase images and styles of our popular products. Currently, around 15 to 20 percent of consumers visit our store after seeing these styles online,” said Tan Yiying, head of a gold shop in Changzhou City of east China’s Jiangsu Province.
Affected by the current high prices, lightweight gold products have gained popularity in China, such as small gold beans weighing only 0.3 grams.
“Even though gold prices are relatively high now, our lightweight and uniquely designed items remain popular among consumers and are selling well,” said Wen Zhuqin, a gold salesperson in Yancheng City of Jiangsu.
Lightweight gold bars are also in high demand. Shuibei Jewelry Park, a renowned gold and jewelry market in south China’s Shenzhen City, has been bustling with consumers, many of whom are looking to purchase lightweight gold bars. “Our consumers tend to prefer smaller weights when buying gold. Gold bars, especially those weighing five or 10 grams, have been in short supply recently,” said Xu Jiaqi, a gold salesperson in Shuibei.
Many consumers also choose to sell the gold they purchased in previous years to capitalize on price differences, while others are opting to exchange old gold products for new items.
“The gold price has dropped by 60 to 70 yuan (about 8.25 to 9.63 U.S. dollars) per gram from its peak, yet most people still consider it too high. Therefore, the trade-in sales now make up the majority, accounting for 60 percent to 70 percent of our total sales,” said You Meiyun, head of a gold shop in Changzhou.
China’s gold market sees boost during Labor Day holiday
The just-concluded 8th Digital China Summit saw the signing of 455 digital economy projects with a total investment of 228 billion yuan (about 31.36 billion U.S. dollars).
These projects span across various domains including next-generation artificial intelligence, robotics, computing infrastructure, and internet medical service.
Highlighting China’s strides in digital transformation and the expansion of its digital economy, the summit was held in Fuzhou, capital of east China’s Fujian Province, and came to a successful conclusion on Sunday, attracting over 360,000 attendees and setting a new historical record, yielding fruitful results.
According to the summit’s organizing committee, more than 40 sub-forums and dialogues were held. As the pivotal role of the summit, guests from the country’s business community accounted for a remarkable 70 percent of the attendees.
Covering an area of 56,000 square meters, the summit’s on-site experience area, which opened to the public from April 28 to May 4, featured four major thematic zones where more than 100 demonstrative activities were held for visitors to have a hands-on experience of the advancement in digital technology.
The debut rate of exhibits exceeded 65 percent, and a low-altitude economic zone was established for the first time ever during this year’s summit.
8th Digital China Summit bears fruit
