"Bought Up As Soon As It Dropped"... Gold Hoarding Frenzy Ignites: 'Now Is the Time to Buy'

Chinese Jewelry Stores Swamped with Customers
More Shoppers Opt for Gold Bracelets

As international gold prices plummet, a gold buying frenzy is sweeping China.

On June 9, Chinese media outlet Sina Finance reported, "Gold bracelet sales are surging amid the sharp drop in gold prices," adding, "Jewelry stores are packed with customers caught up in the buying frenzy."

As international gold prices plummeted, a gold buying frenzy swept across China. Photo by Getty Images

Recently, international gold prices have fallen to 4,400 dollars. Sina Finance noted, "All the gains made this year have disappeared in a single day," but added, "Instead of despairing, investors are flocking to jewelry stores."

The jewelry center in Zhengzhou, China, was packed with customers lining up. People had to wait 50 minutes just to reach the 18th floor. According to the report, the most popular items are gold bracelets. A jewelry store employee said, "These days, customers prefer to wear gold jewelry rather than just keep it at home." The employee added, "Most customers buy high-priced gold products without hesitation or second thoughts. Compared to previous periods of gold price adjustments, people are now much bolder." In contrast, stores selling gold bars had a quiet atmosphere. According to one staff member, "These days, no one wants gold bars."

A gold hoarding craze is sweeping across China. No association with specific expressions. Pixabay.

International gold prices have been declining recently due to heightened expectations of an interest rate hike by the U.S. Federal Reserve (Fed). According to Bloomberg, as of the afternoon of June 8 (Korean time), international gold prices fell to 4,310.90 dollars per troy ounce, marking the lowest level of the year. The decline has erased all of this year's gains, bringing prices back to early-year levels. Gold futures prices have been on a steep rise since last year, reaching above 5,500 dollars per ounce earlier this year.

Sina Finance quoted Qu Rui, deputy director of research and development at Orient Securities in China, as saying that expectations that the Fed's rate hike decision is imminent are a key factor. The report also cited that the U.S. nonfarm payroll data for May, released last week, far exceeded expectations. In addition, it explained that the initial public offering (IPO) of SpaceX temporarily absorbed liquidity from the U.S. stock market, which also contributed to the decline in gold prices.

Meanwhile, China also experienced a frenzy of gold hoarding earlier this year when gold prices hit record highs. In jewelry store clusters, large crowds led to wait times of several hours just to enter, and scalpers reportedly sold entrance tickets for gold shops at a premium of 500 yuan. Demand also surged in Hainan, a duty-free zone where buyers can take advantage of tax exemptions. At the time, it was analyzed that the prolonged slump in China's real estate market drove many people to the safe haven of gold.

This content was produced with the assistance of AI translation services.