Customers return to Hong Kong’s protest-hit jewellery shops to sell their gold as coronavirus pushes prices sky high
- Owners are taking advantage of the gold price, which has climbed almost 10 per cent this year to reach a seven-year high early last week
- The rapid spread of the coronavirus has dampened stock markets globally, and investors have been rushing to buy the yellow metal, long known as a safe haven
Hong Kong’s jewellers, who took a big hit from months of anti-government protests, have found their shops busy again this year.
But the new wave of customers are not shopping for bracelets, wedding rings or earrings. They are there to sell their gold jewellery.
Sellers are taking advantage of the gold price, which has climbed almost 10 per cent this year to reach a seven-year high early last week. The rapid spread of coronavirus has dampened stock markets globally, and investors have been rushing to buy the yellow metal, long known as a safe haven.
The local gold price had risen 9.8 per cent as of March 9 to HK$15,540 (US$1,998) per tael, or 37.9 grams, before falling back to HK$14,670 by last Friday’s close. International gold also rose, jumping 1.5 per cent to US$1,703 per ounce on March 9, when global stock markets slumped amid fears about the outbreak and an oil-price war between Russia and Saudi Arabia.
“I am thinking of taking my gold jewellery to sell as the gold price has reached such a high level,” said a potential seller who only wanted to be identified as Sandy. “I bought my gold jewellery some years ago when the price was almost 30 per cent lower than current levels.
“I can take the profit now and buy them back when the price goes down. I am worried about the [coronavirus] outbreak, but then I think wearing a mask to go to the shop will [protect me].”
Such a “sell high, buy low” mindset is very common in Hong Kong, where most jewellery shops will pay cash for customers’ gold jewellery or allow them to exchange it for other products.