{"id":9943,"date":"2024-09-22T23:49:52","date_gmt":"2024-09-22T23:49:52","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/09\/22\/golds-record-price-run-weighs-on-jewelry-demand-in-china\/"},"modified":"2024-09-22T23:49:52","modified_gmt":"2024-09-22T23:49:52","slug":"golds-record-price-run-weighs-on-jewelry-demand-in-china","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/09\/22\/golds-record-price-run-weighs-on-jewelry-demand-in-china\/","title":{"rendered":"Gold\u2019s Record Price Run Weighs on Jewelry Demand in China"},"content":{"rendered":"

Gold jewelry sales in China are slumping on the back of record prices and weakness in the country\u2019s economy.<\/strong><\/strong><\/p>\n

Bloomberg reported on Thursday (September 19) that Chinese demand is traditionally high at this time of year due to September\u2019s mid-autumn festival and the week-long National Day holiday in early October. <\/p>\n

However, gold\u2019s ongoing upsurge has dampened purchases \u2014 the yellow metal rose past US$2,600 per ounce this week, reaching an all-time high following the US Federal Reserve\u2019s decision to cut interest rates by 50 basis points.<\/p>\n

While global investors remain engaged with gold as a hedge against economic uncertainty, China\u2019s retail market for gold jewelry has seen a significant drop in demand. The China Gold Council reported a 27 percent decline in gold jewelry purchases in the first half of 2024, although the overall drop in gold demand was much smaller at just 6 percent.<\/p>\n

The decline in consumer interest comes as Chinese households face a slowing economy and shrinking disposable income, leading to a significant reduction in retail activity.<\/p>\n

Shop owners in key markets such as Shenzhen\u2019s Shuibei International Jewelry Trade Center have reported weaker-than-expected sales during the wedding season and pre-holiday period.<\/p>\n

Retailers in China, traditionally one of the world\u2019s largest consumers of gold, are reporting steep drops in sales volumes. Consumers are also considering selling their current pieces to take advantage of the high gold price.<\/p>\n

Bloomberg notes that China\u2019s gold premium \u2014 a measure of domestic demand relative to international prices \u2014 has also been in negative territory for most of the last two months. Official data shows that imports of gold reached their lowest level since 2021 in August, highlighting the impact of weak retail and wholesale demand.<\/p>\n

According to the World Gold Council, withdrawals from the Shanghai Gold Exchange, a key indicator of wholesale gold demand, dropped by 37 percent in August compared to the same period last year. This decline is significant given that August and September are typically strong months for gold sales as retailers stock up in anticipation of holiday shopping.<\/p>\n

While retail demand for gold jewelry is slumping, investment in physical gold, such as bars and coins, remains relatively steady. Investors, facing uncertainty in other asset classes like real estate, are continuing to turn to gold as a safe haven.<\/p>\n

As China approaches the holiday season, the outlook for its gold jewelry market remains uncertain. Retailers are hoping for a turnaround, but many acknowledge that sentiment may take time to recover, especially if prices remain high.<\/p>\n

<\/span>Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n

This post appeared first on investingnews.com<\/div>\n","protected":false},"excerpt":{"rendered":"

Gold jewelry sales in China are slumping on the back of record prices and weakness in the country\u2019s economy. Bloomberg reported on Thursday (September 19) that Chinese demand is traditionally high at this time of year due to September\u2019s mid-autumn festival and the week-long National Day holiday in early October. However, gold\u2019s ongoing upsurge has […]<\/p>\n","protected":false},"author":0,"featured_media":9944,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-9943","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/9943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=9943"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/9943\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/9944"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=9943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=9943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=9943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}