During the “Golden Week” holiday, which has historically been a peak period for gold jewelry consumption, this year saw a downturn. Domestic gold jewelry prices remain high, with international gold prices approaching $2700 per ounce and domestic gold jewelry prices nearing 800 RMB per gram. As a result, there has been a sharp decline in the number of people consulting about gold jewelry at counters compared to important holidays in the first half of the year.
In major shopping malls such as Joy City Mall in Xidan, Beijing, and Chaoyang Hopson One, the foot traffic at counters of well-known jewelry brands like Chow Tai Fook, Chow Sang Sang, Lao Feng Xiang, Chow Tai Seng, and China Gold has been significantly lower, with some jewelry stores not recording a single transaction in half a day.
Traditionally, during the “Golden Week” holiday, many jewelry brands offer discounts on top of their gold jewelry listed prices. Despite brands like Chow Tai Fook, Lao Feng Xiang, Chow Tai Seng, and Lao Miao Gold adjusting their gold jewelry listed prices to 773 RMB per gram on October 2 following international gold prices, related promotional activities during the holiday period have failed to generate significant changes.
Some sales personnel mentioned that the continuous rise in gold prices has led to a decrease in customer inquiries, with customers’ rigid consumption demands being suppressed. Customers who visit the stores often complain about the excessively high gold prices and regret not making purchases earlier.
One salesperson said that the number of customers visiting during the “Golden Week” this year has significantly decreased compared to the same period last year, the Chinese New Year, and the May Day holiday, resulting in fewer transactions.
Online comments from Guangdong netizen “Tumi” on October 4 stated, “Yesterday I went to Chow Tai Seng, and as soon as I entered, more than 10 salespersons came up to ask what I wanted to buy, it was scary, and there was no one else (customer).” Shandong netizen “Wan’er” also said, “During the previous ‘Golden Week,’ there were queues at the malls, but now there are basically no people.”
The soaring gold prices are disrupting the marriage plans of young people. A post-90s white-collar worker planning to get married by the end of this year, Zhang Wu, has been shopping for jewelry styles with his girlfriend in major jewelry stores since June, only to be deterred by the high gold prices. Despite the discounts during the “Golden Week,” Zhang Wu still believes it is not cost-effective and remarked, “Last year, the money that could buy a set of ‘five jewelry’ (bracelet, ring, necklace, earrings, and anklet) can now barely afford a set of ‘three jewelry’ (ring, necklace, earrings), and the weight is also lower.”
In the end, Zhang Wu and his girlfriend temporarily gave up the idea of buying “three jewelry” and opted for a single piece of jewelry instead.
Wu Qian, who is also preparing for marriage, and her boyfriend have been too busy with work to find time to pick suitable-priced jewelry, causing their proposed wedding date, planned for this year, to be postponed.
For newcomers who are not as brand-conscious, Shuibei Gold offers better value for money compared to premium-priced jewelry stores. Shuibei Gold maintains an average retail price around 600 RMB per gram, while major gold brands have prices exceeding 700 RMB per gram. However, several Shuibei Gold counter sellers mentioned that due to the steep rise in gold prices, the number of people purchasing gold jewelry in September this year has decreased compared to last year, with many newcomers merely browsing without making purchases, indicating a strong sense of hesitation.
One Shuibei Gold counter seller expressed their feelings, stating that this year’s high gold prices, coupled with fewer people getting married during the “Golden Week,” has led to a 50% decrease in customer visits to their counter compared to last year.
Due to the skyrocketing gold prices and downgrade in consumption, many established traditional jewelry stores, including Chow Tai Fook, have been closing stores on a large scale. According to financial reports, Chow Tai Fook experienced an 18.6% decline in retail sales in the second quarter and closed over 180 stores, while Chow Sang Sang’s profits fell by 36.4% in the first half of the year, leading to the closure of 47 stores. Lao Feng Xiang also saw a 5.8% decrease and closed 35 stores in the first half of the year.