China's gold consumption surges 48.44 percent year-on-year as young consumers become driving force

China's gold consumption surged 48.44 percent year-on-year to reach 813.59 tons during the first three quarters of the year, even overtaking pre-pandemic levels in 2019, statistics from China Gold Association indicated.

Photo shows a gold jewelry counter. (Photo/chinanews.com)

This growing demand for gold jewelry has been underpinned by promotion activities related to holidays, such as the Chinese Valentine's Day held on the seventh day of the seventh month of the Chinese lunar calendar and the Double 11 shopping festival that officially falls on Nov. 11 each year.

Wang Fei, a post-95s girl, bought her two favorite gold pendants at a discounted price of 299.15 yuan ($46.75)/g, much lower than the regular price of 477 yuan/g quoted the same day, during a promotion activity launched in anticipation of the upcoming Double 11 online shopping spree.

"I have saved about 900 yuan thanks to the coupons and discounts offered by the store and the e-commerce platform," said Wang.

According to a recent report released by the World Gold Council, global sales of gold bars and coins increased for the fifth consecutive quarter compared with the same period in the year prior, with the demand for gold jewelry having risen by 33 percent year-on-year, mainly driven by markets in China, India and the Middle East.

Recent years have also seen a turnaround in young consumers’ appetite for the precious metal, previously eschewed as an overly ostentatious sign of wealth and status symbol for comparatively older generations. In addition to traditional wedding-related occasions, especially among those in their 20s and 30s, purchasing gold has been more about consumers finding a way to reward themselves.

Photo shows a gold ring. (Photo/chinanews.com)

A booming demand for gold jewelry can be partly attributed to a slightly lower gold price these days, explained Wang Lixin, managing director of the World Gold Council in China. He also cited new products springing up as another contributing factor.

"While older customers may prefer time-honored brands such as Lao Feng Xiang Jewelry, their younger counterparts favor new brands such as Chew Tai Fook or Chow Sang Sang,” said Jiajia, a counter staff working at a gold shop. She attributed the rise in gold consumption among younger consumers to advertising campaigns launched on social media platforms such as Xiaohongshu.

Meanwhile, these gold brands have also devoted more of their effort to the workmanship and design of their products so as to enhance their appeal to a younger generation of consumers.

"The company that I work for once launched new products in collaboration with Disney, Chibi Maruko Chan and others brands as well as new products with fashionable designs, which have gained wide popularity among young consumers," said Jiajia.