Across The Border | The soaring gold price is far from good news for gold retailers
The yellow metal has risen 12pc in value since June. But sales of gold jewellery have slumped 20-40pc. Some customers have even been selling their gold items to stores. So what’s happening?
The red-hot gold price has continued surging higher this summer.
But is there an accompanying gold rush happening in retail stores?
While the market seems to be expecting retailers to benefit from the price rally, analysts say in reality quite the opposite is happening.
Gold has soared 28 per cent in value so far this year, touching US$1,357 a troy ounce on Monday.
Since the beginning of June, the yellow metal has risen approximately 12 per cent, and excited by the performance, mainland and Hong Kong investors have also been scooping up shares in gold jewellery retailers.
Investors in the biggest listed names have been making a mint.