Millennials and Gen Z are “becoming a huge driving force” in the rising popularity of gold. — AFP
SHUNDE: The sound of gentle tapping filled a jewellery workshop in southern China as a craftsman hammered pine leaf patterns onto a soft slab of gold in the style of old ink paintings.
Elaborate traditional pieces created by master goldsmiths have always been popular in China, bought as gifts for special occasions like the Lunar New Year or simply as investments.
But jewellers are now having to consider a new and fast-growing consumer base –younger people, who are increasingly keen to buy gold, seeing it as a safe investment in uncertain economic times.
Key to gold’s current popularity is China’s lacklustre post-Covid recovery, which is hitting young people especially hard as youth unemployment soars and traditional investment options such as property suffer, analysts said.
“In the past, only the older generation would buy gold jewellery,” Tan Ruikun, master craftsman with legacy jewellery giant Chow Tai Fook, told AFP on a recent visit to the workshop in Guangdong province.
“Young people are different now, they will also buy it because of its ability to retain value. If younger elements are added in the design, it will appeal to young people even more,” explained Tan.
In a bustling Shanghai jewellery market, 30-year-old freelancer Zhang Jie said that “it’s hard for young people to save money”.
Buying gold means “the money is still with you in a different way”, she said.
Millennials and Gen Z are “becoming a huge driving force” in the rising popularity of gold, Nikos Kavalis of Metals Focus said.
“The last few years have seen attitudes change dramatically,” he said.
That reflects Chow Tai Fook’s recent consumer research, which suggested Gen Z was more attracted to buying gold than any other age group under 40.
“Pure gold jewellery continues to serve as a safe haven for Chinese consumers amid recent economic conditions,” the report noted. Gold jewellery was among the best-performing consumer goods in China last year. — AFP
