Gold new must-have among young Chinese shoppers this Spring Festival

Spring Festival has long been a hot season for buying gold in China. The gold craze has gotten even hotter as young Chinese join in the trend this year.

"Tens of thousands of customers come to our store every day during the Spring Festival holiday," said Dong Ming, director of the gift department at Caibai Jewelry, a popular place to buy gold jewelry in Beijing.

Speaking beside the crowded counters, Dong told China Media Group that families usually come together to shop, and there are more young customers this year.

Data shows that young people's desire for gold has quietly taken hold in China in recent years. An insight report released by consultancy firm Mob Data found that Gen Z's inclination to purchase gold surged from 16 percent in 2016 to 59 percent in 2021. In 2023, China's leading e-commerce platforms, Tmall and Taobao, revealed that the primary online consumers of gold jewelry were those born after the 1990s.

Associated with prosperity and fortune, gold jewelry are often bought as New Year gifts. Consumers favor pieces with dragon elements to welcome the Year of the Dragon.

To attract young consumers, gold jewelry brands also offer affordable products that cater to young people's tastes.

Pure gold necklaces, bracelets, rings and other items worth between 2,000 yuan ($278) and 3,000 yuan ($417) are most popular among young consumers, said Xia Liuxia, head of a gold shop in Jinan, the capital of east China's Shandong Province.

Xia told Xinhua News Agency that a lock-shaped gold pendant engraved with koi fish and lotus is one of the bestsellers in her shop. In Chinese culture, koi fish and lotus are auspicious symbols that are believed to bring good luck.

"The lock has an exquisite design and adopts an ancient engraving craftsmanship," said Xia. "But the price is not high. Many young consumers come to look for it."

In 2023, gold consumption in China reached nearly 1,090 tonnes, an increase of 8.78 percent year on year, according to the China Gold Association.

Gold jewelry sales jumped by almost eight percent, while the sale of gold bars and coins surged by over 15 percent last year. The association predicts that consumers under 25 will become new major gold buyers.

Total global gold demand hit a record high in 2023. China's economic recovery has driven up the demand for gold jewelry, and the country has become a significant growth engine for the global gold jewelry market, according to a report released by the World Gold Council.

Industry leaders said China's policies to boost consumption contributed to the growing gold consumption across the country. They said small-gram-weighted gold products are gaining popularity because they are accessible to those with limited budgets.

The average gold price in 2023 was $1,940.54 per ounce, 8 percent higher than in 2022. As gold prices increased over the past year, Chinese consumers see buying gold as a good investment compared with other mainstream financial assets.

"Based on our research, we find young consumers intended to pursue the so-called saving consumption. On one hand, they consume; on the other hand, they can have a sense of savings," Wang Lixin, CEO of the World Gold Council China, told CGTN.

Data from the China Gold Association also shows some 40 percent of the national gold consumption comes from smaller cities in the country. Wang said gold consumption has a solid foundation in big cities. However, there is greater potential for growth in the smaller cities due to the development of the economy and consumer consumption power in those areas.