Record gold prices bring tears to the eyes of Chinese parents looking to buy wedding jewellery for their daughters
- A pair of gold dragon and phoenix bracelets, the most basic bridal gift in Chinese tradition, now costs 30 per cent more than at the start of the year
- Gold prices likely to rise further amid US-China tension, coronavirus pandemic and uncertain economic outlook
Amy Chan is a bit worried these days, and for good reason, too. The business consultant has been watching with trepidation as the price of gold gallops away. In the next few months, Chan’s daughter is getting married and she wants to give her gold jewellery, as is the custom in China.
“Gold jewellery is a must for my daughter’s wedding, and I will not abandon the tradition no matter how high the price of gold,” said Chan.
“It is painful to see the price of gold going to record highs recently. It may affect me as, on my limited budget, I’ll be able to buy very little jewellery if the price continues to rise.”
Gold has surged over 36 per cent this year, crossing the US$2,000 per ounce level on Tuesday. It hit a record high of US$2,075 on Friday morning, as investors pushed the precious commodity higher amid concerns over US-China political tensions, the coronavirus pandemic, inflation and an uncertain global economic outlook. Gold’s previous peak was in 2011 when it reached US$1,920.
The weakness of the US dollar and global central banks’ quantitative easing measures have made gold a better investment than holding on to cash, according to independent gold analyst Jasper Lo, who expects the price of the yellow metal to continue to be volatile this year.
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The price of gold in Hong Kong has risen in tandem, hitting HK$19,247 per tael (US$2,483 for 37.9 grams) on Friday.
Gold jewellery – including a pair of dragon and phoenix bracelets, rings and earrings – is considered a standard bridal gift in Chinese tradition. Bracelets weighing one tael would cost about HK$20,847 now, which is 30 per cent more expensive than the HK$16,038 it cost at the start of this year.
“Gold prices will still move upwards due to the ongoing tussle between the US and mainland China,” said Jerry Jrearz, international business director of Hong Kong-based brokerage First Asia Merchants Bullion. “This will support gold price to go further up to hit US$2,300 per ounce in the coming three months.”
Clement Chan, managing director of accounting firm BDO, is pleased and relieved at the same time, as his foresight to buy jewellery for his daughter’s upcoming wedding in October paid off.
“I am lucky that I purchased gold jewellery some months ago. We saved about 25 per cent as a result of this early preparation,” he said.
Amy Chan, however, has not been that fortunate, but her daughter appreciates her mother’s efforts.
“The economy is bad, and it is a tough time for my mother,” the daughter said, who did not want to be named.
“She is still willing to pay a high price to buy the gold jewellery for my dowry. I love my mother and I will forever cherish what she gives me.”
