Summary of Key Points
International spot gold prices have broken through $4,500 per ounce, driving domestic gold jewelry prices to new highs in over two months (an increase of more than 100 yuan per gram since August). Offline gold shops are experiencing a trend where many people are just watching the market without making purchases, leading to a cooling of jewelry demand (with only the necessity for weddings supporting sales). However, there has been a surge in demand for investment gold bars. Overall gold consumption increased slightly in the first half of the year, but the structure has reversed: jewelry sales decreased by 33%, while sales of gold bars and coins rose by 28%. Retail sales of gold and jewelry fell by 10.1% in July compared to the same period last year. Brands believe that success or failure does not depend on single prices alone; it requires long-term comprehensive capabilities.
1. International Gold Prices Drive Up Domestic Jewelry Prices by Over 100 Yuan per Gram
As international gold prices rise, domestic gold shops adjust their prices accordingly. After international gold surpassed $4,500 per ounce on August 20th, brands such as Chow Sang Sang and Chow Tai Fook increased the price of their jewelry: Chow Sang Sang to 1,359 yuan per gram (up 46 yuan), and Chow Tai Fook to 1,355 yuan per gram (up 37 yuan), representing an increase of over 100 yuan in just two months, reaching new highs for more than two years. In other words, buying one gram of jewelry now costs about 100 yuan more than it did two months ago.
2. Gold Shops Become Popular Viewing Areas, but Few Make Purchases
Reporters visiting several gold shops in Shanghai found that the counters were crowded with people, but few actually placed orders. Salespeople mentioned that as gold prices continued to rise in August, consumers were hesitant to buy, preferring to wait and see. Even promotional offers such as discounts or free processing fees did not attract many customers, as the increase in price was too significant to be offset by any savings. They also noted that jewelry sales have been sluggish for some time, with people waiting for prices to drop.
3. A Shift in Gold Consumption: Less Jewelry, More Gold Bars
In the past, people bought gold mainly for wearing; now, more are purchasing gold bars as a form of investment. Data from the China Gold Association shows that although total gold consumption increased by only 1.23% in the first half of 2026, the structure has changed dramatically: jewelry sales decreased by 33.88%, with fewer people buying for daily wear or impulsive purchases. Only the necessity of weddings is still driving demand. In contrast, sales of gold bars and coins increased by 28.42% because their prices are more in line with international market trends, making them a more reliable option for value preservation.
4. Retail Sales of Gold and Jewelry Cool Down in July; Consumer Confidence Needs to Be Restored
Statistics from the National Bureau of Statistics show that retail sales of gold and jewelry increased by 0.7% from January to July this year, but fell by 10.1% in July alone. This indicates that gold prices rose sharply in July, deterring consumers from making purchases. Those who intended to buy jewelry postponed their decisions due to the high prices. Although investment in gold bars was brisk, the overall retail market still declined because the base for jewelry sales is larger.
5. Brands: Price Is Not the Only Factor; Long-Term Competence Matters
In response to fluctuating gold prices and diverging consumer preferences, representatives from Chow Sang Sang stated that a single price change does not determine a brand's success. What matters is the long-term strength of the brand, such as the quality of its designs, the level of service provided, and its ability to meet customer needs (e.g., custom wedding jewelry or convenient purchasing options for investment gold bars). After all, even if gold prices drop, consumers will still choose brands they consider worth buying from.
In summary, the logic of the gold market has changed: higher prices have made people more cautious when buying jewelry and more inclined to buy gold bars. Brands must rely on their core strengths to retain customers. For ordinary individuals considering purchasing gold, they should either wait for jewelry prices to drop or opt for gold bars as a more value-preserving investment—yet they need to clarify their purpose: is it for wearing or for savings? This will determine the best choice for them.