Chinese Gold Lovers Face High Prices as Record Surge Impacts Buyers
Chinese consumers have been historically passionate about gold. However, record-high prices due to geopolitical tensions and economic concerns are affecting purchasing habits. Although the price surge has motivated some investors, many shoppers are now trading older jewelry for newer designs, as transactions decline substantially in 2023.
Chinese consumers, known for their affinity towards gold, are grappling with record-high prices that are currently reshaping buying behaviors. The significant price rise, spurred by global economic uncertainties and geopolitical tensions, has seen gold soar over 50% this year, crossing the $4,000 an ounce mark.
In China, the economic downturn, particularly in the property sector, has fueled a fervent interest in gold as a secure investment. The inflated prices now mean that one gram of gold costs over 1,160 yuan. Yan Lixiaofeng, a wholesale gold dealer in Shenzhen, noted a 60% decline in transactions compared to an average year.
While consumers at Shanghai's gold markets remain optimistic about future price increases, the escalating costs have shifted buying trends. Many customers are opting to trade older jewelry for newer pieces instead of making fresh purchases, indicating a cautious approach amidst the gold frenzy.
(With inputs from agencies.)
Google News