In Henan Province’s Biyang County, most of the gold jewelry stores that used to thrive on the main commercial street have now closed down one after another. This is primarily due to the sharp fluctuations in gold prices despite being at high levels, coupled with a decrease in the number of marriages leading to a shrink in market demand.
According to a report by the South China Morning Post, “In our small county town, gold jewelry used to be very popular,” said 25-year-old kindergarten teacher Yu Qian. She claimed to be a frequent customer of gold jewelry stores. “There used to be over 20 gold shops here, but I estimate that more than two-thirds of them have closed their doors,” she said.
It’s not just Biyang County, as demand weakens, jewelry retailers across China are shutting down their stores.
According to the interim report released by Chow Tai Seng on August 25, the company opened 84 new stores but closed 557 stores during the reporting period. In the first half of 2026, leading jewelry brands such as Lao Feng Xiang and Chow Tai Fook have experienced varying degrees of store closures.
As reported by Sina, data shows that in the first half of 2026, Lao Feng Xiang’s operating income was 19.987 billion yuan, a year-on-year decrease of 40.08%; net profit attributable to the parent was 716 million yuan, down by 41.34% year-on-year. By the first quarter of 2026, Lao Feng Xiang’s chain marketing points had decreased to 5,170, a net reduction of 185 from the end of 2025, all from franchise stores. Chow Tai Fook closed a net of 896 mainland stores in the 2025 fiscal year and 969 in the 2026 fiscal year, with an additional 258 stores closed in the second quarter of this year, totaling a reduction of more than 2,200 stores compared to the peak in the 2023 fiscal year.
The wave of store closures is driven by the continuous pressure on domestic gold jewelry consumption and the drastic fluctuations in international gold prices.
Since 2026, the international gold market has experienced significant volatility. At the beginning of the year, the price of gold surged to a historical high of $5,200 per troy ounce, then fell back to $4,170, and rebounded to the current level of around $4,400.
Mr. Fred You, a business development manager working in Guangdong, told the South China Morning Post that small jewelry stores are currently under tremendous operational pressure. His company is a national jewelry brand focusing on the consumer market in lower-tier cities, counties, and rural areas of China.
He mentioned that consumers are buying less gold, but store owners still have to bear inventory, rent, and other operating costs. “Consumers’ willingness to pay high brand premiums for decorative value has essentially disappeared,” Mr. You said.
The World Gold Council reported in July that in the second quarter, demand for gold jewelry in China fell by 28% year-on-year, marking the lowest level for that quarter since 2004. The high and volatile gold price, combined with cautious consumer attitudes, have suppressed market demand.
The council’s Consumer Insights Report from last year also mentioned that declining marriage and birth rates are bringing long-term downward pressure to China’s gold jewelry market.
Yu, the woman mentioned earlier, believes that the high gold price has even affected people’s marriage plans. “Many young people today are unwilling to get married,” she said. “Gold jewelry and betrothal gifts have become a heavy economic burden for young couples when getting married.”
According to data from the Ministry of Civil Affairs of the Communist Party of China, the number of registered marriages in the first half of this year was 3.275 million pairs, a 7.46% decrease year-on-year. People like Yu mentioned that economic headwinds, high living costs, and job uncertainties are causing young people to postpone or give up on marriage.
For some middle-class investors, this cautious attitude is not limited to the gold sector. Vicky Liu, a gold investor and doctor from Guangzhou, mentioned that the sharp fluctuations in the US dollar, US Treasury bonds, Chinese stock market, gold, commodities, and real estate market have made it more challenging to find secure investment channels. A gold investment she made earlier this year is still in a loss position.
“Nowadays, you can lose money no matter what you invest in, so people have become more cautious,” she said.