China’s youth shun diamonds in favour of gold, seeking safe-haven investment amid economic downturn
- Domestic gold prices reached new highs in China last year, with the retail market witnessing a gold rush, particularly in lower-tier cities and less affluent counties
- Gold is seen to offer stronger wealth preservation characteristics during an economic downturn, with demand set to rise ahead of the Lunar New Year
While the iconic tagline once made the diamond ring an indispensable symbol of matrimony worldwide, young people in China are no longer subscribing to the theory that it is forever.
After becoming engaged in December, Emma Huang and her fiancé decided to allocate most of their budget to purchasing gold jewellery from China’s largest jewellery retailer, Chow Tai Fook.
“Although the diamond ring is visually appealing, the importance of retaining value takes precedence,” said 26-year-old Huang, a primary school Chinese teacher in the southern province of Guangdong.
In China today, many identify with Huang’s consumption mentality, with domestic gold prices reaching new highs last year, and the retail market witnessing a gold rush.
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Chinese consumers sell off old jewellery amid record high gold prices
And as China’s stock market struggles to recover, denting investor expectations, consumers with limited access to overseas investment products have turned to gold as a safe-haven investment, even though purchasing bars or jewellery at retail outlets would incur extra processing fees.