Editor’s Note
This article examines gold’s enduring role as a safe-haven asset, highlighting how current price trends are driving retail demand, particularly for investment-grade bullion and modern lightweight jewelry.
Gold has evolved from the king of currency to a favored investment, possessing three “hardcore characteristics”: scarcity, stability, and divisibility.
Gold consumption structure shows significant divergence, with safe-haven demand pushing prices higher.
On July 21, COMEX gold returned above $3,400 per ounce and is currently stable within the $3,300-$3,500 range. The World Gold Council noted that more central banks are beginning to purchase gold directly in local currencies. We anticipate the overall upward trend in gold prices will persist. Domestic gold brand prices have climbed, with many brands’ gold jewelry prices returning to the thousand-yuan range. We believe that changes in overseas geopolitics, US tariff policies, and escalating international trade frictions between the US and Europe are further driving market safe-haven demand. Gold prices are expected to maintain a long-term upward trend after a period of adjustment.
From January to June 2025, retail sales of gold, silver, and jewelry by enterprises above a designated size in China cumulatively reached 194.8 billion yuan, a year-on-year increase of 11.3%.
Latest statistics from the China Gold Association show that China’s gold consumption in H1 2025 was 505.205 tons, a year-on-year decrease of 3.54%. Within this, gold jewelry consumption was 199.826 tons, down 26.00% year-on-year, while gold bars and coins consumption was 264.242 tons, up 23.69% year-on-year. Inhibited by high gold prices, gold jewelry consumption is undergoing structural adjustment. Ancient method gold, hard pure gold, and lightweight gold jewelry are in higher demand. Products combining gold with other materials are favored by younger consumers.
According to the “2024 China Gold Jewelry Retail Market Insight,” young people aged 18 to 34 contributed over one-third of gold jewelry sales. To better cater to young consumers, major gold jewelry brands have innovated in shape, style, craftsmanship, design, material, and weight, accelerating the launch of IP collaboration products. Examples include Chow Tai Fook’s Chiikawa collaboration and Lao Feng Xiang’s “Saint Seiya” series collaboration.
Gold price volatility; Weak terminal gold and jewelry consumption; Risks of industry policy changes; Risks of intensified market competition.
Report Title: “National Trend Goes Younger, Gold’s ‘New Trend’ — An In-depth Look at the Gold and Jewelry Industry”
Analyst: Du Yang (SAC No.: S0870523090002)
Analyst: Yuan Rui (SAC No.: S0870525060002)
Research Report Release Date: July 28, 2025
Publishing Institution: Shanghai Securities Co., Ltd.
