Year of the Dragon Spring Festival "Golden" Joy Abounds: Gold Consumption Booms, Perfect for Investment and Preservation

During the Spring Festival, the gold consumption market experienced a new surge. Although international gold prices have risen to historic highs, consumers’ enthusiasm for purchasing gold jewelry remains strong. Driven by festive atmosphere and promotional activities from merchants, the foot traffic at gold jewelry stores in cities like Shanghai and Hangzhou has significantly increased, with many citizens choosing gold jewelry as New Year gifts or as souvenirs for visiting relatives and friends.

“Every year during the Spring Festival, I buy some gold jewelry for my family. This year’s zodiac gold design is particularly exquisite, both commemorative and able to retain value,” said Mr. Zhu, a Shanghai resident. He mentioned that recent distribution of shopping vouchers and year-end bonuses prompted him to take advantage of discounts to make purchases. In Hangzhou, some parents buy gold “lucky charms” with their children’s New Year money, believing that physical gold is more stable and has better value preservation compared to virtual gold. Ms. Sun said, “In the past few years, we’ve had our children buy gold, which can appreciate in value and also has a good meaning of bringing good luck.”

Pricing strategies of gold brands have further stimulated consumption. Several well-known brands recently increased their gold prices, but this did not affect the purchasing willingness of loyal customers; instead, it triggered a wave of rush buying. Merchants generally reported that during the Spring Festival, sales of gold jewelry far exceeded investment gold bars, especially those with innovative designs combining IP collaborations and traditional craftsmanship, attracting many young consumers. “Nowadays, gold jewelry styles are fashionable, and many young people buy them for personal use—typical self-indulgence consumption,” said staff at Lao Feng Xiang stores. Unique designs have become an important factor driving sales.

Unlike the festive attribute of jewelry consumption, the strong sales of investment gold bars reflect consumers’ recognition of gold’s value preservation function. Currently, domestic brand gold prices are generally around 1,500 yuan per gram, nearly doubling compared to last year’s Spring Festival, yet investors continue to enter the market. Industry experts remind that gold and other precious metals are currently at high prices, increasing market volatility risks. Jiang Shu, chief analyst at Xirang Industry Gold Circle in Shanghai, pointed out, “Even if gold prices may hit new highs again, it doesn’t mean you should blindly chase the rise. If profit-taking triggers, prices could fall rapidly, so investors need to stay rational.”