Chinese Consumers Abandon Gold Jewellery for Bars and Coins
The gold jewellery industry in China is experiencing a downturn as consumers switch their focus to gold bars and coins. In Biyang, Henan province, most of the gold jewellery shops that once lined the main commercial street have closed due to high but volatile gold prices and a decline in marriages.
According to Yu Qian, a 25-year-old kindergarten teacher who frequently buys gold jewellery, 'Gold jewellery used to be very popular in our small county.' She estimates that over two-thirds of the gold shops in her area have closed down.
Jewellery retailers across China are shutting stores as demand weakens. Recent corporate disclosures show that Chow Tai Seng reported a net reduction of 473 stores, Lao Feng Xiang closed 342 outlets in third- and fourth-tier cities, China Gold cut 323 locations in the first half, and Chow Tai Fook logged a net loss of 258 mainland China stores.