major gold jewelers have launched large-scale discounts and promotions, and consumers are purchasing gold.
On December 24, a reporter visited the gold consumer market in Beijing and found that as the end of the year approaches, Christmas, New Year’s Day and other holidays are coming one after another. Superimposed on the year-end sprint performance, major gold jewelers have launched large-scale discounts and promotions, and consumers are purchasing gold. Kim was enthusiastic.
Consumption enthusiasm is rising
The reporter visited and learned that due to the rebound in international gold prices, the gold price of jewelry before discounts is generally 620 yuan/gram, labor costs are not included. The prices after discounts vary greatly, with jewelry gold of different brands differing by nearly 100 yuan per gram.
Take Chow Sang Sang as an example. Currently, the price of jewelry gold before the discount is 621 yuan/gram, with a discount of 30 yuan per gram, plus labor costs.
In comparison, Zhou Dasheng’s discounts are relatively strong. The reporter saw that at present, Zhou Dasheng’s jewelry gold quotation is 608 yuan/gram, with a discount of 100 yuan per gram, and the price after the discount is 508 yuan/gram.
Chao Acer has launched an event with a discount of 80 yuan per gram. The price after the discount is 542 yuan/gram, labor costs are not included.
In addition to gold, major gold jewelers also offer varying degrees of discounts on diamonds and K gold products.
For example, Chow Tai Seng launched a buy-one-get-one-free activity on diamond products. Chao Acer launches a second diamond pair ring at half price, and if a customized diamond exceeds RMB 10,000, you can get a free ring setting of RMB 2,000.
The reporter visited and found that major gold stores attracted many consumers due to the influence of major promotions and the peak holiday consumption season.
"International gold prices have risen sharply recently, and there are few prices below 600 yuan/gram. The price after the recent discount is indeed very suitable. The New Year itself is the peak season for gold consumption, and the transaction volume this weekend is significantly larger than before." Several sales staff Tell reporters.
Institutions are optimistic about the market in 2024
Institutions are generally optimistic about the gold market in 2024. The main logic is that the Federal Reserve's interest rate hikes may have ended, and a rate cut cycle is expected to begin in 2024. The price of gold is expected to be catalyzed and rise further.
For example, Zheshang Securities mentioned in a research report that the Fed's attitude has turned dovish, and this cycle of interest rate hikes may have substantially ended, and interest rate cuts are an important catalyst for gold.
A research report from Guolian Securities shows that there is a certain degree of cyclicality in the gold industry. From the perspective of demand structure, the proportion of consumer demand has remained above 60% for a long time. Consumer demand has strong optional attributes and is less sensitive to gold prices. It is mainly affected by factors such as per capita disposable income and the number of marriages. The overall performance is stable. The investment demand is for the purpose of obtaining investment income and is highly sensitive to gold prices. In the future, with the continuous penetration of terminal jewelry consumption scenarios, the cyclical attributes of the domestic jewelry industry will weaken and the growth attributes are expected to become more prominent. Looking forward to 2024, the upward trend in gold prices is expected to coupled with the upgrade of gold jewelry craftsmanship to drive demand for non-wedding scenes such as accessories, and the industry will usher in the traditional peak season during the New Year's Day and Spring Festival holidays, and the short-term prosperity is expected to continue.
In the long term, a research report from Guolian Securities shows that compared with mature markets such as the United States and Singapore, China's per capita jewelry consumption still has room for improvement. In the future, as China's economic growth and national disposable income increase, as well as residents' demand for accessories increases due to the upgrade of gold product technology, China's per capita jewelry consumption still has great potential for growth.
Regarding the forecast of the international gold price outlook, Guotai Junan Research Report shows that the overall trend of gold in 2024 will be relatively volatile, and the trading rhythm will mainly follow the guidance of interest rate cut expectations. The price focus in the first half of the year may be higher than that in the second half of the year, and price fluctuations and games will also be concentrated in the first half of the year, giving Some long trading opportunities. Taking COMEX gold as an example, the high point for the year was US$2,190 per ounce, the low point was US$1,930 per ounce, and the price center of gravity was around US$2,000 per ounce.
