Recently, the gold market has been highly volatile. After a slight decline, the gold price has entered a 'rapid rise' mode. On March 15, the market price reached 694 yuan per gram, and this news quickly made it onto the hot search list, attracting wide - spread attention.
In Changsha, what are consumers' attitudes towards the soaring gold price? Is the gold market heating up or cooling down? On March 16, an on - the - spot investigation was carried out.
Consumers' Mindsets Are Polarized: To Buy or to Wait
On March 16, a visit was made to the Minghuida Gold and Jewelry Trading Center near the Wuyi Business District, which is known as Changsha's Shuibei. Here, the gold price is 5 to 10 yuan per gram higher than the international market price, generally ranging from 695 to 705 yuan per gram. There were quite a few consumers in almost every store, selecting gold jewelry.
'If I don't buy now, it will be even more expensive later!' Ms. Li, who was choosing gold jewelry at Century Gold on the third floor of the trading center, said that she had been keeping an eye on the gold price trend and was planning to buy a gold necklace as a gift for her 36th birthday.
'A 7.38 - gram necklace in the shape of a mini gold bar, calculated at a gold price of 705 yuan per gram plus a processing fee of 30 yuan per gram, would cost about 5,400 yuan,' Ms. Li said. 'Compared with the price of about 490 yuan per gram at the beginning of last year, the gold price has risen so sharply. It's better to buy earlier and 'enjoy' it earlier.'
During the investigation, it was found that there were many consumers with similar views. Sales staff at many gold stores in the Minghuida Jewelry Trading Center reported that most consumers with marriage or other rigid - demand for gold purchases were very enthusiastic about buying gold due to the rising price. 'During the weekend, almost all the customers at the display stands were buying the five pieces of gold jewelry for weddings. They were afraid that the price would be even higher if they missed the current one,' introduced a clerk at the Renmin Gold Factory Store.
In contrast, well - crafted and slightly more expensive gold jewelry brands such as Chow Tai Fook and China Gold seemed a bit deserted compared to the bustling gold stores in the Shuibei sales model.
At the China Gold Fuxing Times Store, the gold price was 905 yuan per gram. Despite promotional activities such as '68 yuan off per gram' and '138 yuan off for purchases over 888 yuan at a fixed price', the attractive discounts failed to arouse consumers' enthusiasm. At the Chow Tai Fook Fuxing Times Store, the gold price was 875 yuan per gram after a 30 - yuan - per - gram discount. Although the clerk introduced the styles and discounts very enthusiastically, the transaction rate after price inquiries was not high.
'The gold price is too high. The discounted price at Chow Tai Fook is basically the same as the marked price two weeks ago,' said Ms. Chen, whose wedding was approaching. She planned to convert the budget for the five pieces of gold jewelry into cash. 'Let's wait and see. I hope the gold price will go down.'
Ordinary Consumers Should Not Over - focus on the Investment Attribute
The 'Global Gold Demand Trends Report' released by the World Gold Council (WGC) last month showed that central banks around the world continued to buy gold at an astonishing pace. The purchase volume has exceeded 1,000 tons for the third consecutive year, and the investment demand for gold has also reached the highest level in four years. Meanwhile, the proportion of consumers aged 25 to 35 has increased from 30% last year to about 40%.
In February this year, the team of Joni Teves, a precious metals strategist at UBS, predicted that the gold price would climb to $3,200 per ounce this year and then decline slowly, stabilizing at $3,000 per ounce by the end of 2025. Joni Teves pointed out that investors' positions in gold were still insufficient, which meant there was a lot of room to increase gold in investment portfolios. Goldman Sachs, a global leading financial service company, raised its forecast for the gold price at the end of 2025 from $2,890 per ounce to $3,100 per ounce on February 17, citing the continuous strong demand for gold from global central banks.
Facing the surging gold price, what should investors and ordinary consumers pay attention to? A relevant person in charge of the precious metals business at the Changsha Branch of the Industrial and Commercial Bank of China suggested: 'Investors should adopt a strategy of buying in batches according to their own risk tolerance and avoid investing too much money at once. Ordinary consumers with rigid - demand for gold purchases, such as for gifts or weddings, should mainly focus on actual needs and not over - focus on the investment attribute.'
In addition, industry insiders reminded that although gold has a hedging function, it is not a sure - win investment. In the past 10 years, the gold price has fluctuated significantly many times. When participating in gold investment, investors should fully understand the market risks and manage their funds well.