This week, residents of Hong Kong are rushing to sell all kinds of precious metals, from gold bars to rings, just to cash in on the historic surge in gold prices. With gold prices breaking through $4,000 per ounce for the first time, soaring by 50% this year, people are taking out their inherited gold jewelry to weigh and count the stacks of cash they receive in return.
According to reports from Reuters, on Friday, around 50 people were seen queuing outside Chong Kee gold shop in the Central business district of Hong Kong. This surge is being driven by widespread geopolitical and economic uncertainties, prompting investors to flock to safe-haven assets. Gold prices hit a historic high of over $4,000 per ounce on Wednesday.
Among the queue was lawyer Theresa Lam, who was getting ready to sell the gold she had been hoarding for 20 years, including gold bars and bracelets. She planned to sell a few 6-ounce gold bars, each valued at nearly HK$222,000 (approximately $28,500). Lam stated that this was a “very good selling opportunity,” as she expects to earn multiples of her initial investment.
She remains optimistic about the future price of gold. Since the implementation of the National Security Law by the Chinese Communist Party, the uncertainty facing Hong Kong has been escalating. Lam believes that “gold is a very safe investment for me. It is stable, can be held indefinitely, and preserves its value.”
Gold, as a traditional means of preserving value, is one of the best-performing assets in 2025.
In stark contrast to the selling frenzy in Hong Kong, this week in a gold market in Shanghai, there were more consumers buying gold than selling. With the continued slump in the mainland’s real estate market and slowing economic growth, lacking personal investment channels, gold has become a primary alternative for hedging.
However, most transactions involve exchanging old for new, with customers simply wishing to trade their old jewelry for newer designs. Meanwhile, in Hong Kong, the outflow of population has intensified since the implementation of the National Security Law, and many are taking advantage of this historic high price to cash in their gold holdings in preparation to leave the city.
Chong Kee gold shop, known for its attractive gold repurchase prices, stopped issuing numbers on Thursday afternoon after reaching the quota limit of 300 people.
Inside the shop, Terence Hung, who works in the construction industry, cashed in about 400 grams of family gold accumulated over the years, including jewelry gifted to him when his son turned one month old.
“We are about to emigrate to Scotland soon,” said 34-year-old Hung. “Selling now is the right time to earn extra money for our new life.”
He received approximately HK$430,000 in cash, mentioning that he earned more at Chong Kee gold shop compared to other retailers. At that moment, the shop owner, Mr. Chong, was busy weighing and handing out cash to customers. For amounts exceeding HK$100,000, checks are issued, and customers are required to present identity documents.
“It’s very, very busy right now,” Chong admitted. “The demand has been consistently high, people just want to sell gold.” He posted a handwritten note at the entrance of the shop, reminding customers to “come early tomorrow morning to pick up numbers and wait outside for their turn to be called.”