Spot and futures gold prices have been steadily climbing, making gold the hot topic of conversation on streets and in alleys alike. On December 6, a reporter from China Securities Journal conducted a field survey of the gold consumption market and found that despite the continued rise in gold prices, consumer enthusiasm for buying gold remains undiminished as the year draws to a close, driven by both wedding-related demand and the desire to treat oneself.
　　Gold prices continue to rise.
　　“Today, the gold price is 619 yuan per gram, and there are no promotional offers. Recently, the gold price has been hovering around 620 yuan per gram, with the highest point even exceeding 630 yuan per gram. Right now, this price represents a short-term pullback,” Li Hong, sales manager at a Chow Tai Fook store in Beijing, told our reporter.
　　According to Li Hong, although gold prices have remained high, consumer enthusiasm for buying gold has not been affected. “The end of each year is traditionally the peak season for the gold consumption market, as consumers have a concentrated demand for gold purchases. Moreover, the weight of typical jewelry-grade gold generally ranges from a few grams to several tens of grams; thus, in the short term, fluctuations in gold prices have relatively limited impact on the overall price.”
　　During our visit, reporters found that many brands have launched price-reduction promotions. For example, China Gold is offering a discount of 100 yuan per gram, bringing the price down to 518 yuan per gram after the reduction.
　　“Gold prices have been rising steadily, but promotional offers have been ongoing as well. Currently, including the labor cost, the average price for gold jewelry is around 580 yuan per gram,” a Chinese gold sales representative told reporters. “As we approach the end of the year, sales volumes have picked up considerably recently, marking a small peak in purchases. Consumers’ motivations for buying gold mainly fall into three categories: investment, wedding preparations, and self-indulgence.”
　　It is worth noting that the journalists’ investigation also revealed that, fueled by the ongoing rise in gold prices and growing consumer interest, some jewelry brands are actively promoting their inventory of diamond-studded and other gemstone-set pieces.
　　“Currently, diamond products are uniformly discounted by 40%, and there are also some additional promotions. Diamond sales have generally been sluggish this year, but recently, with the rise in gold prices, some consumers have started paying attention to relatively more affordable diamond products,” a Chinese gold sales representative told reporters.
　　Listed companies are actively responding.
　　Faced with the continued rise in gold prices, listed companies in the gold sector have recently been disclosing their response measures one after another. Recently, China Gold stated during an institutional research visit that, in anticipation of potential future fluctuations in gold prices, the company is adopting a strategy of borrowing gold to repay gold and adjusting its mining activities based on sales volumes, thereby effectively safeguarding the interests of both investors and consumers. The company remains highly confident in the gold jewelry market and plans to step up R&D efforts in various product categories—including wedding-related items, self-indulgence products, and investment-oriented items—to better meet market demand in the future.
　　Cai Bai Shares stated that the company operates under a fully direct-operated model, enjoys rapid inventory turnover, and adopts a multi-batch, small-volume purchasing approach based on “sales-driven procurement,” thereby mitigating risks arising from fluctuations in gold prices. The company collaborates with several banks to offer gold leasing services and uses gold T+D contracts to hedge against the risk of gold price volatility.
　　Industry insiders say that the biggest driver behind this round of gold price breakthrough may be bets on the Federal Reserve cutting interest rates. Other factors boosting prices include geopolitical developments and exceptionally strong buying by central banks worldwide.