Gold prices continue to fluctuate; "buying gold" and "playing with gold" consumption require rationality

Ask AI · Why are young consumers favoring fixed-price gold jewelry and gold customization?

Since 2026, the gold market has experienced continuous intense fluctuations, with gold prices repeatedly showing “roller coaster” trends, soaring from $4,300 per ounce at the beginning of the year to over $5,500, and recently retreating back to around $4,700. Amidst large price swings, some people take advantage of the dip to “buy the bottom” and purchase gold bars, others calmly buy “fixed-price” gold jewelry, and some visit gold shops to refurbish old gold. “Buying gold” and “gold customization” are becoming the hot trends in the current gold consumption market.

Last weekend, the investment gold bar counter at Beijing Caibai Department Store (referred to as “Caibai Store”) was crowded with people. Grandpa Liu was holding a 10-gram gold bar he just bought from the counter, smiling. Grandpa Liu said that recently, gold prices were “scarily high,” with investment gold reaching over 1,200 yuan per gram at one point. He hadn’t dared to buy earlier, but “the prices have finally come down a bit these days. Now it’s around 900 to just over 1,000 yuan per gram, which is a good price.” Grandpa Liu said he would buy more if the price becomes more favorable in the next few days.

Unlike Grandpa Liu’s “wait-and-see” holding pattern, Ms. Wang appeared particularly decisive. She told reporters, “Take advantage of these days when gold prices are reasonable to stock up a bit. When the price goes up again later, I’ll sell for a profit. I believe (gold) will definitely rise further.” While speaking, she had already instructed store staff to purchase 60 grams of gold bars.

Consumers like Grandpa Liu and Ms. Wang are quite common. A counter manager at Caibai Store told reporters that recently, due to sharp gold price fluctuations, there has been a noticeable increase in customers buying investment gold bars. “In the past two days, we’ve restocked several times, but still can’t keep up with demand.”

Amidst the volatility of gold prices, “fixed-price” gold jewelry has attracted many young consumers. In a store of Beijing Chao Hong Ji, Ms. Zhao was choosing gold jewelry. She said, “‘Fixed-price’ gold jewelry looks better and is more worry-free, no need to worry about price fluctuations.” The reporter found that a “King Pudding Dog” lucky charm she bought that day weighed only 0.7 grams but was priced at over 2,100 yuan.

A staff member at Chao Hong Ji told reporters that currently, over 60% of the store’s “fixed-price” gold jewelry accounts for the total. “Many young people now buy gold jewelry, first looking at the design and meaning, and only later considering weight and cost performance.” She added, “‘Fixed-price’ products are more oriented toward ‘accessories consumption,’ and the purchasing group is also clearly becoming younger.”

Beyond “buying gold,” “gold customization” has also become a new choice for many consumers. Lin, the owner of a gold customization shop in Sanlitun, Beijing, told reporters that since late March, the business of processing old gold has significantly increased. Customers who come to inquire and place orders are mostly young consumers, who prefer personalized designs and popular styles.

Lin explained that the basic labor cost for customizing a piece of gold jewelry ranges from 20 to 60 yuan per gram, while complex processes like traditional filigree or hand-engraving can cost from dozens to over a hundred yuan. “Many consumers think that with such big fluctuations in gold prices, buying new is not cost-effective. They prefer to modify old gold into new styles for a small fee.” He said, “‘Gold customization’ is booming, which actually reflects more rational consumption and a greater focus on the intrinsic value of gold.”

Qù Ruì, senior deputy director of the Oriental Jincheng Research and Development Department, pointed out that recently, gold prices have fallen significantly from previous highs, triggering consumers’ “bottom-fishing” mentality and impulse buying akin to “discount shopping.” The “gold customization” model, which uses “raw gold + lower labor costs,” greatly reduces costs and better meets the rational and personalized consumption needs of young groups.

Zhao Qingming, vice president of the Huijuan Research Institute, believes that under the influence of falling gold prices and some institutional bullish expectations, some consumers buy gold with a “bottom-fishing” mindset, which is understandable. However, they should remain cautious of blind optimism. He pointed out that current gold price levels are seriously overestimated, and further corrections are possible.

Regarding investment advice, Qù Ruì said investors need to distinguish between essential needs and investment demands, focusing on controlling premium costs. If mainly for necessity, they should prioritize bank investment gold bars with relatively low premiums; if for investment, they can stagger their purchases during price corrections.

Zhao Qingming recommended that investors establish risk prevention mechanisms, avoid overconfidence, and not hold the so-called “time for space” mentality. Especially for those trying to “bottom-fish,” they should also prepare to cut losses. (Reporter Ni Runzhu)

Source: Economic Information Daily