Chinese Valentine’s Day boosts gold sales by 13pc in third quarter
Demand surge ends 10 quarters of decline, according to World Gold Council
Chinese Valentine’s Day purchasing in mainland China pushed up demand for gold jewellery, which rose by 13 per cent year on year in the third quarter to reach 159.3 tonnes, according to the World Gold Council.
The rally ended 10 consecutive quarters of decline, the council said in a report released on Thursday. “The first green shoots of recovery in the market were witnessed around late August, with gifting of gold jewellery for Chinese Valentine’s Day. This was followed by the Autumn Festival, a time for family reunions and an occasion when some parents buy their children gold jewellery for its perceived ability to bring happiness and good luck.”
Chinese Valentine’s Day, or the Qixi Festival, falls on the seventh day of the seventh lunar month and celebrates the romantic folk tale of a fairy who was only allowed to meet her mortal husband on this day.
The festival usually falls in August and many among the younger generation consider it the Chinese version of Valentine’s Day, and buy gold jewellery to show their love. Gold in Chinese culture symbolises unchanged love.
The bounce in gold is also being viewed as a sign of broader economic recovery on the mainland. This has led many jewellers to open new stores in smaller cities in the third quarter, after two years of store closures due to weak demand.
“Holiday purchases have lifted demand, albeit from a very low base. Leading retailers reported decent growth in the quarter – sales were up both in terms of value and volume, and new store openings,” the report said.
The five-day Shenzhen Jewellery Fair, held from September 14 to 18, reported a good response in terms of visitor numbers and sales exceeded expectations, the report said.