Gold prices have been unstable this year due to ongoing trade disputes and geopolitical tensions. Investors and consumers see gold as a “safe haven” to protect their money. In late April, international gold prices hit a record high of over US$3,500 per ounce. On Monday, the spot price in New York was about US$3,229.51 per ounce.
China, the world’s largest producer and consumer of gold, has felt these swings strongly in its retail jewellery market. Last week, prices at major Chinese gold shops fell below the important threshold of 1,000 yuan per gram (around US$138.60).
In Shanghai’s Yuyuan Garden market, some gold necklaces were selling for as low as 880 yuan per gram. This drop led to a brief surge in bargain hunting, with many buyers using government-issued shopping vouchers.
One shopper, looking for wedding bands, said, “I got a discount coupon and saw the price drop. I ended up paying just over 600 yuan.”
However, while some customers are buying, others are selling. At a nearby goldsmith’s workshop, the owner said recycling gold was his busiest trade last week. On some days, he melted down more than 400 grams of gold.
“People were hopeful when prices went up,” he explained. “Now that prices have fallen, they want to lock in profits.”
Investment consultant Zhou Zheng said the drop in gold spending is linked to reduced market fears.
“Trade tensions are easing and geopolitical worries are less intense,” he said. “After such a sharp rise in prices, it was natural for people to take profits.”
Still, the main reasons for gold’s rise this year remain. Since late 2022, gold prices have almost doubled. This is due to central banks buying more gold, a weaker US dollar, and persistent inflation. Even though prices have paused, many experts believe the upward trend is not over.
Not Just Selling Gold — Changing the Product
The question now is not just if gold sells, but what type of gold people want.
On May 1, China’s Ministry of Industry and Information Technology introduced a national standard for “hard pure gold” jewellery. This officially recognized the industry’s way of coping with high prices.
Hard gold is not new, but now it has a clear definition. It is 99.9% pure gold, made harder by special processes. This allows for lighter, hollow, and more artistic jewellery pieces that keep their size but weigh less.
Signs of trouble in China’s gold market appeared last year. Demand dropped 25% in 2023 as rising gold prices made buyers rethink both how much gold to buy and what shapes to choose.
Still, Chinese consumers want gold — just differently. Buyers prefer lighter, more flexible designs that balance tradition and cost.
“We are no longer selling gold just by weight,” said Wang Lixin, China CEO of the World Gold Council. “We are redesigning jewellery to survive in a high-cost world.”
Hard Gold: A New Approach
Pure gold is soft and needs to be thick to avoid bending. Large items like bangles and wide rings are heavy and costly. As prices rose, the industry created harder gold jewellery that stays pure but is more durable.
Hard pure gold uses new alloys and casting techniques. It keeps 99.9% purity but is much harder. This lets manufacturers make hollow and detailed designs. These can include gems, engravings, or thin shapes, giving jewellery a bigger look without extra weight.
For example, a bracelet that once needed 30 grams of gold now can be made with less than 20 grams. This lowers the retail price by about a third.
“This technology does more than save material cost,” Wang said. “It opens new creative possibilities. We are no longer limited by gold’s softness.”
Before this standard, “hard pure gold” was mostly a marketing term. Different brands claimed various purities and qualities. The new rules set clear levels for hardness, labeling, and purity tests.
The World Gold Council sees this standard as key to keeping quality high in China and preparing brands for international markets.
“If Chinese brands want to compete worldwide, they need a common technical language,” Wang said.
The standard also protects consumers. Clear guidelines reduce the risk of poor durability or false purity claims, which could damage trust.
More Style, Less Weight
Many Chinese buyers now focus less on daily gold price changes. They care more about design and affordability. Younger customers especially want jewellery that looks good but is not too heavy or expensive.
This trend is changing how brands create, price, and market their products.
“In light of gold price swings, many customers want lighter gold jewellery without losing quality or style,” said Xie Haoran, General Manager at Chow Tai Fook Jewellery, China’s largest gold retailer.
Using hard gold and hollow designs, Chow Tai Fook lowers gold weight without reducing size or shape. Their new collections mix traditional Chinese symbols with precise manufacturing techniques.
Chow Sang Sang, another major retailer, says more than half of its gold sales are now hard gold pieces.
“Buyers care about design,” said Ronnie Yao, a company representative. “They like hard gold because it is lighter, easier to wear, cheaper, and more stylish.”
At Mingr jewelers, which serves mainly 25-45-year-olds, preferences differ by age. Older customers still prefer heavy, traditional gold with classic designs. Younger buyers want stylish pieces that are easy to wear every day.
“They are practical,” said Quan Lin, Mingr’s marketing manager. “They want gold that looks good, matches clothes, and isn’t too heavy or costly.”
Looking Beyond China
The new hard gold standard is expected to help Chinese jewellery brands expand overseas. Markets like Southeast Asia and the Middle East are also shifting toward lighter, more wearable designs, Wang said.
However, exporting a standard is complex. Different countries have their own tastes, purity rules, and regulations. Experts believe China’s gold exports will grow first through online sales, where Chinese brands already lead in mid- to low-price ranges.
For China’s gold industry, this move is less about short-term sales and more about the future. When gold prices fall again, competition will return. At that point, design and innovation will matter more than just momentum.
Related topics:
- ‘Smash-and-Grab’ Burglary Hits South Loop Jewelry Store, Police Report
- Richemont Reports Strong Growth in Jewelry Sales, Decline in Watch Revenue
- Jewelry Brand Vickisarge Unveils New Capsule Collection with Val Garland
