It has been a millennia-old tradition for Chinese couples to purchase gold ornaments—usually a necklace, bracelet and earrings, known as the Three Gold Pieces—for the bride before the wedding.

These gold pieces, if necessary, can be used as a financial safety net for future family emergencies. This custom reflects the Chinese belief in the importance of preserving family wealth and the lasting value of gold.

As one of the longest holidays in China, the National Day holiday, from October 1 to 7 this year, is often seen by expectant couples as an ideal time for weddings, given it allows most of their family and friends to attend and celebrate the joyful occasion together. As a result, this period is also a peak season for the gold market, with people getting ready to tie the knot flocking to stores to buy their wedding essentials.

"The holiday rush usually starts around mid-September, when couples start browsing for gold items on weekends, and we are fully prepared to welcome them this year," a salesperson surnamed Chen from Caibai Jewelry in Beijing's Dongcheng District, told Beijing Review in the lead-up to the "gold rush." She pointed to a wide array of gold ornaments in the display case, adding that her best sales record was during the same season two years ago.

"Many customers, especially young couples in their 20s and 30s, still prioritize gold over even diamond rings when working with a limited budget," she added. "And it's understandable—gold is a better investment, retains value, and, if necessary, can be easily converted to cash."

The gold rush? 

This year, however, the global surge in gold prices has impacted consumer behavior, the marketing strategies of gold businesses and the assortment of gold products available on the market.

Different factors, including interest rate cuts by the U.S. Federal Reserve, have contributed to this spike in international gold prices. According to statistics from the New York Mercantile Exchange, a commodities futures exchange based in New York City, gold futures prices have surged to an all-time high of $2,659.8 per ounce (31 grams), a 30-percent increase since January. 

A research report by Founder Securities, a Chinese financial services provider, states that the current cycle of interest rate cuts is expected to be prolonged.

China Fortune Securities, a brokerage company, suggests that the U.S. Federal Reserve's unexpected 50-basis-point cut in mid-September could lead to further reductions. 

Both reports predict that during this period of interest rate cuts, gold prices are likely to see multiple increases. On September 24, just one week before the upcoming "gold rush" in China, major offline gold retailers in the country adjusted their prices, with an average of 770 yuan ($109) per gram for 24-karat gold (99.99-percent purity).

To attract more customers amid skyrocketing gold prices, some brands implemented holiday discount strategies.

For example, prestigious Hong Kong-based jewelry company Chow Tai Fook announced a discount of 25 yuan ($3.56) per gram on gold products under 20 grams, and 40 yuan ($5.69) per gram for products over 20 grams.

Other strategies to appeal to the key customer group—those getting married—included offering discounted packages that combine gold and diamond jewelry.

In some of Chow Tai Fook's brick-and-mortar stores in Beijing, customers purchasing gold also received 10-percent discount coupons for diamond products.

"Many potential customers are sitting on the fence now that the gold prices are rising almost weekly," a store manager of Laofengxiang, a Chinese jewelry brand established in 1848 in Jiaxing, Zhejiang Province, told newspaper Jiaxing Daily. "Most of the customers making quick decisions to buy gold are couples planning to get married soon and those confident in the future rise of gold prices."

She added that the retail price of 24-karat gold is likely to reach 800 yuan ($113) per gram by the end of the year and strongly advised hesitant customers should "act now."

"We got married in late June, and we wanted to wait for gold prices to come down before purchasing our Three Gold Pieces. But it seems that the decrease will not happen in the near future," a new groom surnamed Yuan told Beijing Review, adding that his wife was determined to purchase the gold accessories during the National Day holiday. "So I think the time is now. Anyway, gold remains a great way of 'storing fortune'—despite the high prices."

Gold gets personal 

With confidence in the future of gold value, some couples are shifting their focus from the ornate, intricate gold jewelry traditionally associated with Chinese weddings to simpler, more practical options that are also far more affordable.

This trend has boosted demand for gold coins and bars over classic wedding jewelry.

"In the first half of 2024, sales of traditional gold jewelry dropped sharply, while consumer demand for gold bars and coins surged," said Wang Shengbin, Vice Chairman of the China Gold Association, at the opening ceremony of the Shenzhen Jewelry Fair on September 13.

"Frequent gold price fluctuations have lowered customer interest in gold jewelry pieces with high processing fees (referring to the costs associated with transforming raw gold into finished products—Ed.) Additionally, younger consumers make up a large portion of our customer base, pushing gold companies to adapt their products and strategies to attract the new-generation buyers."

One prominent approach to captivate these younger customers is to develop co-branded products featuring popular intellectual properties (IPs) that resonate with Gen Z.

Chow Tai Fook, for instance, has teamed up with popular brands including Disneyland, Line Friends, a collection of popular emoji characters created by the Republic of Korea's Line Corp., and Japan's Sanrio, a company known for creating and producing popular emojis, to co-brand their products.

Disney princesses, Sanrio's Hello Kitty and Brown (the bear from Line Friends) have been featured in Chow Tai Fook's Lucky Bead Bracelet gold collection.

The lucky bead, a traditional Chinese symbol believed to bring good fortune, consists of a red braided cord and a small piece of gold, crafted using a simple carving technique.

Other gold companies have also launched IP-based gold products. Laofengxiang partnered with Japanese animation giant Namco to release a limited-edition gold called Gundam, referring to a series of anime, manga and other media, while Beijing-based jewelry brand Chow Tai Seng partnered with tech titan Tencent's mobile game Game for Peace, also known as Peacekeeper Elite, and the popular documentary series National Treasure produced by China Media Group.

In addition to simple or meaningful co-branded gold products from big brand names, many young customers are increasingly drawn to the option of customizing their gold items.

This trend has been enabled by the widespread use of digital technology in the jewelry industry.

Customers can now design their desired pieces using tools powered by artificial intelligence (AI) online. These tools allow users to create designs with just a few words, without needing any prior knowledge of design concepts. Some smaller brands also use AI-generated images to refine designs according to customer specifications before crafting the final product.

"The development of digital technology has generated more opportunities for the gold industry, enriching the consumer purchase experience and facilitating their willingness to spend money on gold," Lin Yu, manager of digital technology platform of Zhaojin Mining Industry Co. Ltd., one of the leading gold production companies in China, told newspaper People's Daily. "This comprises a range of personalized customization services, including AI design."

"When I was a little girl, gold struck me as being old-fashioned and was something of my mom's generation," 20-year-old Feng Ruoyao, a college student in Shanghai, told Beijing Review. "Now, I think the gold products on offer are catchy and fashionable! I bought four lucky-bead bracelets last year. Gold has become increasingly popular among people my age, not only as items of value and tradition, but as meaningful souvenirs."

(Print Edition Title: Priced to Perfection) 

Copyedited by Elsbeth van Paridon 

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