“STABLE” ASSETS
Gold jewellery was among the best-performing consumer goods in China last year, as the post-pandemic recovery lost its shine in the face of flagging domestic consumption and declining business confidence.
A long-running property sector crisis and more recent stock market rout have further dented investors’ options.
The market in central Shanghai where AFP met Zhang, the freelancer, was buzzing with customers before the Lunar New Year.
Global gold prices hit an all-time high in December, so “people may see it as a more stable value of assets”, she said.
Feng Ning, a 24-year-old medical industry worker, had similar motivations.
“When I started earning my own money … I bought other luxury products, but they would depreciate a lot when you want to exchange them for cash,” she said.
“My friends (and I) have switched to choosing gold.”
One small shop in the labyrinthine market was notably busier than others, with almost every inch of its counters crowded.
The reason, said another store owner, was that it was famous on the Instagram-like platform Xiaohongshu — attracting younger customers.
CHINA CHIC
Chow Tai Fook has also leveraged social media to adapt to this new interest, managing director Kent Wong told AFP.
The 95-year-old company is keen to position itself as more than just a brand for the old, wealthy and traditional.
Typical jewellery pieces include enormous dangling necklaces made of nine descending pigs, a symbol of fertility given as part of wedding customs in southern China.
But gold consumption in China last year was driven by “products lighter than 10 grams, or cheaper than RMB 2000 ($278)”, according to the World Gold Council (WGC), reflecting the smaller budgets of millennial and Gen Z customers.
Xiaohongshu users share videos of glass bottles full of gold beans or other charms, showcasing their savings as they add to their treasure pile.
Legacy jewellers have cabinets full of such golden amulets, but they also design bigger pieces aimed at young consumers.
A phenomenon noted by both the WGC and Wong was “guochao” – translated as “national wave” or “China chic” – the rise of brands that celebrate Chinese cultural identity.
“Young people are becoming more and more confident about Chinese culture,” said Wong.
The company recently ran a popular series that reimagined Tang dynasty museum pieces as modern jewellery.
“This is giving new life through our current aesthetics,” said Wong.
“I think this is how to pass on our traditional things.”