Shanghai jewelry gold prices hit new highs during the year ushered in consumer spending season

With the world's major central banks successively introducing quantitative easing policies to stimulate the economic recovery, the international gold price has become stronger. In the bullish tone of gold, in September, gold stores in Shanghai raised the prices of precious metal accessories such as gold, gold, and platinum in an all-round manner, and the jewelry gold price hit a new high in the year.

From August onwards, the market is very bullish on gold. In September, with the central banks of major economies in the world introducing monetary easing, international and domestic inflationary pressures have increased, and the long-term value of gold's long-term security has been favored by the market. The United States Index fell, the precious metals sector boosted, all kinds of gold financial products, gold bullion and gold jewelry set off a new wave of buying heat in the market.

The reporter learned that gold jewelry stores such as Lao Fengxiang and Lao Miao gold have gradually adjusted prices from 408 yuan per gram in early August to 415 yuan per gram, 420 yuan per gram, and 425 yuan per gram, all the way up. QE3 announced a jump of 10 yuan this week, reaching 435 yuan per gram, which has continued to rise since then. It is currently at a high of 442 yuan per gram. In addition, the price of gold jewelry from Hong Kong-owned brands like Zhou Shengsheng and Chow Tai Fook has also increased from 439 yuan/g at the beginning of this month to 461 yuan/g at present.

With the Mid-Autumn National Day approaching, gold also ushered in the "golden nine silver ten" consumer season. Although the prices of gold ornaments in major gold stores have risen sharply, consumers’ buying enthusiasm remains unabated. The reporter visited the major gold shops in Yuyuan and found that the people who bought gold were in an endless stream, especially some old brands of jewelry. Lao Fengxiang’s chief spokesman Wang Ensheng told reporters that the rise in international gold prices has driven the gold market hot, although the price of gold ornaments has risen, but the consumer’s consumer psychology is still “buy up and not buy”. At the same time, in September, the rigid demand for gold began to increase, and wedding peaks, festive gifts and corporate activities all spurred up the consumption boom.

In order to seize this round of gold consumption hotspots, major businesses have also launched various new products or activities to attract consumers. According to Chen Shichang, executive director of Chow Tai Fook Jewellery Co., Ltd., due to the relatively large number of newborns and marriages in the Year of the Dragon, the company's “Perfect Marriage” and “Fuxing Baby” series are currently the most popular in the market. Chen Shichang introduced that, in addition to preserving and appreciating value, the traditional cultural connotation of gold and the virtue of auspiciousness and nobleness are the reasons why it can endure in the market for a long time. In addition, constant innovation and improved product design and process are the boosters that promote the development of gold ornaments.

In the same period of last year, the highest gold prices for Chow Tai Fook and Lao Fengxiang reached 490 yuan/g and 470 yuan/g respectively. However, whether the price of gold can exceed this high this year, the company said it still needs to rely on the international market trend. In addition, the gold jewelry company's sales and sales in the peak season this year can be higher than the same period last year, the gold jewelry company's mixed. Lao Fengxiang relevant departments said that due to this time the price of gold is not rising for a long time, to determine whether the sales of the golden season of the current round compared to last year, a breakthrough, the key depends on the upcoming "golden day on the 8th." Chen Shichang expects sales and sales of CHOW Tai Fook’s gold ornaments to increase this year. However, due to the current economic downturn and the market’s excessive uncertainties, many gold jewelry companies’ sales may not be as good as last year.

In the purchase of gold raw materials for enterprises, several gold production and sales companies have stated that the cost of their purchases has not been affected by the rise in international gold prices. However, Fang Peng, deputy general manager of Jin Yafu Jewelry Co., Ltd., said that the fluctuating market will bring uncertainties and risks to production and sales companies, and may also affect consumers' understanding and evaluation of gold values ​​and prices. It is impossible for an enterprise to completely avoid such market risks. The key is that companies can make accurate judgments based on changes in the market, and use hedging, reverse trading, and manufacturers' “fast-forward and fast-out” methods to reduce risks.

Fang Peng also pointed out that the price of gold ornaments is greatly affected by the market environment, but the rigid demand for gold jewelry is relatively stable every year. These rigid demands ensure the sales of the gold ornaments industry. According to statistics, the annual demand for gold ornaments for weddings is around 300 billion. In addition, there is a group of high-end customers in the gold jewelry market. They will invest in or collect jewelry such as gold and jade that have high standards of craftsmanship and value. At the same time, the current young people are happy to pursue fashion personalized gold jewelry, which also brings a considerable income for the gold jewelry retail industry.

Wang Ensheng told reporters that compared with international gold jewelry, there is still much room for development of Chinese gold jewelry. At present, most of the consumer's consumption of gold jewelry still stays in the raw material stage. What cares is the weight of gold ornaments. However, with the improvement of people’s aesthetic concepts, exquisite craftsmanship and unique design of fashion ultimately are the key to wining customers. Fang Peng also proposed that gold jewelry companies should strengthen the cultural connotation and fashion concept of the product. At the same time, he said that the gold jewelry is mainly used for consumption. If the consumer is for investment purposes, it is better to buy gold and silver bars.