Chinese gold demand from millennials picks up
(Kitco News) - With Indian gold being hit badly by the pandemic it seems Chinese millennials are picking up the slack. In the nation, there seems to be a trend with 20-30-year-olds in which gold is making a massive comeback.
The demand for gold in China recorded a strong rebound triggered by a notable jump in demand for gold jewellery among consumers. The initial H1 period of the year witnessed boosted sales of gold jewellery items, such as gold bracelets, pendants, earrings and necklaces made of modern as well as traditional designs.
According to people in the industry, there has been a serious rise in demand for heritage gold jewellery in China. The likes of Chow Tai Fook Jewellery Group Ltd. and Luk Fook Holdings International Ltd. reported heightened demand for their heritage gold jewellery. In addition to this, any gold jewellery manufacturers are reportedly boosting their investment in heritage gold, as they believe that the trend is likely to stay longer.
Roland Wang, managing director of WGC China said "The younger generation grew up when China's economy was stronger, they have more confidence in Chinese development and may have less admiration for Western culture,". He added "They want to have more traditional Chinese culture in their daily life, which can be represented through what they wear or how they decorate their home... Heritage gold can deliver this."
A recent report published by the World Gold Council (WGC) noted the pickup in demand was visible since mid-2020, thus helping the country to double the country’s gold jewellery demand to take it back to the pre-pandemic levels. The surge in Chinese gold demand more than offset the dip in demand from India, which continues to be hit badly by the pandemic.
According to industry and market research consultancy Beijing Zhiyan Kexin Consulting, the market for heritage gold in China increased tenfold between 2017 and 2019, and is seen reaching nearly 100 billion yuan ($15.43 billion) by 2024. Its share of China's gold jewellery market is forecast to jump from less than 2% in 2017 to nearly a quarter by 2024.
Beijing Zhiyan Kexin Consulting went on to say "Gold jewellery enterprises are rapidly recognising the importance of cultural value and are digging deep into it, "in its heritage gold report in January.