Light-weight products are in high demand; “shopping” for savings through trade-in programs; long-term fixed investments in gold bars are gaining popularity.

Under the fluctuation of gold prices, these new trends are emerging in the gold consumption market.

Reading Tips: Light-weight products are gaining popularity, “shopping around” for savings through trade-in programs, and long-term fixed investments in gold bars are increasingly favored...

Recently, reporters visited several jewelry stores and found that, amid fluctuating gold prices, lightweight, circular, and long-term consumption has become a new trend in gold buying.

Recently, the gold counter at Beijing Qinghe Wanxianghui has quietly undergone a transformation—those bulky, high-carat gold bracelets that once gleamed prominently have now been relegated to the corner, while tiny 1-gram gold beans and miniature pendants studded with tiny diamonds have taken center stage. Meanwhile, the gold shop on Changying Tianjie has put up signs advertising “1:1 trade-in for new items,” and soon-to-be bride Zhang Bai exchanged her old gold bracelet for a brand-new piece, saving nearly 6,000 yuan after paying just a small labor fee... These scenes are a microcosm of today’s booming gold consumption market.

Light-weight products continue to be popular.

Since the beginning of this year, gold prices have been highly volatile, and some consumers have been inclined to purchase products with smaller gram weights in order to mitigate the risks posed by gold price fluctuations.

Recently, reporters at the jewelry counter in Beijing’s Qinghe Wanxianghui noticed that the traditional wedding gold bracelets—once proudly occupying center stage and gleaming with golden brilliance—are now relegated to a corner of the main display area. In their place are an array of small-weight products: gold bean coins weighing just 1 gram, miniature zodiac lucky beads, and pendant necklaces adorned with tiny diamonds.

“Recently, there’s been a surge in consumers purchasing products with smaller gold weights,” a jewelry store clerk told our reporter. These products typically retail between 1,000 and 6,000 yuan per piece, making them much more accessible to younger customers compared to traditional gold bracelets, which often carry a price tag of tens of thousands of yuan per item. Since the beginning of this year, the store’s sales of small-weight gold products have grown by 80% year-on-year. Among these, small gold beans, lucky beads, rings, and petite pendant necklaces are particularly popular; some internet-famous designs even require advance reservations.

In front of the counter, a young woman who was selecting rings said, “Gold prices are too high—gold bracelets with larger carat weights are temporarily out of our budget. But gold jewelry with smaller carat weights have a lower purchase threshold and are more suitable for us young people who’ve just started working.”

Liu Shiyu, who just purchased 2-gram gold coins, also admitted frankly: “With their low total price due to the small weight, even if gold prices drop, the loss won’t be significant.”

Commenting on this consumption trend, Zhu Zhigang, Supervisor and Chief Analyst of the Guangdong Gold Association, told a reporter: “The low purchase threshold and minimal impact from gold price fluctuations are the main reasons behind the popularity of small-weight gold products. This shift in consumer behavior not only reflects consumers’ rational choices but also highlights that gold jewelry is expanding its role—from being a traditional ‘essential for weddings’ to serving as everyday accessories and light luxury investments.”

Zhu Zhigang believes that brand owners need to pay attention to current consumption trends and shifts in consumer psychology, and innovate traditional products accordingly. For example, gold jewelry incorporating new technologies such as 3D and 5G is becoming increasingly popular in the market.

The “trade-in” boom is surging.

On June 13, at the jewelry counter in the Changying Tianjie Shopping Mall in Beijing, signs reading “1:1 Trade-In for New,” “Zero Loss,” and “No Depreciation” were particularly eye-catching. In front of the counter, consumer Zhang Bozheng handed over his mother’s old gold bracelet to the sales associate for weighing—this 25-gram gold bracelet, purchased ten years ago, could be exchanged for a brand-new, traditionally crafted gold bracelet by simply paying an additional 1,500 yuan for labor costs.

“It saved nearly 6,000 yuan compared to buying new outright. Although we had to buy 20% more of the new gold jewelry, it still turned out to be much more cost-effective than buying everything new,” Zhang Bai told the reporter.

“Afected by traditional notions, many consumers still have old gold jewelry tucked away at the bottom of their chests. In the past, they’d simply leave such pieces untouched because they considered the designs outdated. But now, with gold prices soaring, they’re seeing an opportunity to ‘turn waste into treasure.’” A manager at a jewelry store in a shopping mall revealed to our reporter that the number of customers exchanging old jewelry for new ones has significantly increased, and exchange transactions now account for 45% of total sales. Zhu Zhigang stated: “Essentially, the ‘trade-in’ model is a balancing strategy that consumers adopt between their need to preserve value and their desire to indulge in consumption. It not only helps them avoid the risk of missing out on potential gains from directly selling off their old jewelry but also allows them to upgrade their accessories at a lower cost—making it a rational approach to dealing with high gold prices.”

Under this trend, businesses in some regions have launched promotional offers to attract more consumers. Recently, Zhengzhou introduced a special consumption subsidy program for gold and jewelry, marking the first time that precious-metal purchases have been included in the trade-in scheme. The consumption subsidy program features a “Four Zeros and One Exemption” policy—meaning zero brand restrictions, zero weight limits, zero additional-weight restrictions, zero depreciation deductions, and exemption from new-product labor charges—as well as a special 15% subsidy for gold and jewelry. Many jewelry stores have also rolled out exchange programs offering trade-ins based on grams or by the gram.

Meanwhile, to make it more convenient for customers to exchange old gold for new, some brands have launched a “smart gold exchange” service. At the basement level two of the Changying Tianjie Shopping Center in Beijing, an ATM machine capable of real-time gold recycling has already begun operating. Consumers simply place their old gold jewelry into the machine, which automatically measures the gold content and calculates its value based on the current gold price. Customers can then choose to either recycle their old jewelry for cash or purchase new gold jewelry—completing the entire process—from gold measurement and valuation to recycling and new-purchase selection all by themselves.

The popularity of the “trade-in” program is on the rise, satisfying consumers’ demand for upgrading their purchases while also having a positive impact on the gold jewelry retail industry. Zhu Zhigang told reporters that, on the one hand, this provides gold jewelry retailers with new avenues for sales growth; on the other hand, it also promotes the standardization and development of the gold recycling market.

Long-term fixed investments in gold bars are gaining popularity.

On June 12, at the Beijing Hepingli Branch of the Industrial and Commercial Bank of China, programmer Chen Yiyu had just withdrawn a 20-gram gold bar from the counter. “Starting two years ago, I’ve been regularly accumulating Ruyi Gold—each quarter, I exchange it for a 20-gram gold bar. By now, I’ve saved nearly 200 grams of gold,” he said. He opened the gold-saving app and added, “The returns are pretty good; much more worthwhile than keeping money in a fixed-term deposit.”

According to data released by the China Gold Association in January of this year, China’s gold consumption in 2024 totaled 985.31 tons, a decrease of 9.58% year-on-year. Specifically: gold jewelry accounted for 532.02 tons, down 24.69% year-on-year; while gold bars and gold coins reached 373.13 tons, up 24.54% year-on-year.

“Currently, the gold consumption market is showing a polarized trend: jewelry consumption is declining, as high gold prices are curbing demand for jewelry, while demand for gold bars as an investment is on the rise—this also reflects consumers’ growing recognition of gold’s monetary attributes,” analyzed Zhu Zhigang.

“Gold jewelry carries too much brand premium, and when you add in the labor costs, it’s simply not the best choice for financial investment.” Wang Qianran, who has been buying gold jewelry for four years, decided this year to stop purchasing gold jewelry altogether and instead started buying gold bars from banks. “Hedging against inflation” is the main reason she’s turned to gold as a financial investment product. “Gold has consistently shown a bullish trend over the long term, so I’m buying gold bars purely for savings—investing a fixed amount every quarter, and planning to hold them for at least five years.”

“Consumers are increasingly viewing gold as a long-term, small-scale investment instrument. This shift is conducive to optimizing the market structure,” said Lü Chao, General Manager of Guangzhou Tongxin Investment Consulting Co., Ltd. and a gold investment analyst. He noted that, in terms of demand structure, the share of investment demand is on the rise; in terms of product structure, small-specification gold products are emerging continuously; and in terms of market participant structure, the proportion of individual investors is increasing, which in turn encourages service providers to offer more personalized services.

However, Lü Chao also cautioned: “Gold itself is subject to a certain degree of volatility. Gold prices are influenced by a variety of factors and are difficult to predict; consumers could suffer losses if prices fall. There are risks associated with transaction costs—frequent trading can erode profits. Physical gold storage carries its own risks, so it’s important to take precautions against theft and damage. Moreover, gold jewelry products carry the risk of authenticity—consumers should be vigilant against counterfeit and substandard goods.” In response, Zhu Zhigang expressed his agreement: “No investment product can guarantee that its value will only rise and never fall. I advise consumers not to blindly chase rising prices or panic-sell when prices drop.”