Surging gold prices have dampened consumer demand for gold jewelry in central China's Henan Province, triggering a noticeable drop in sales at many local jewelry stores.
China's gold prices have continued to fluctuate at high levels recently, with the price of gold jewelry from some domestic brands standing around 800 yuan (approximately 111 U.S. dollars) per gram.
According to Gu Lixia, a jewelry shop owner in Sanmenxia City, her business is suffering from both dismal sales and poor customer flow.
"Sales have decreased by at least 30 percent (compared to last year), and the number of customers entering the store also dropped significantly, a reduction probably by around 40 percent," Guo said.
For most customers, jewelry serves well for special occasions like weddings or anniversaries. However, they are now holding off on purchases due to the high gold prices.
"In the past, with 10,000 yuan, you could buy around 17 or 18 grams of gold, but now you can only get just over 10 grams," said a local customer.
To cope with declining sales and smaller profit margins, stores are adjusting their strategies. They are cutting back on larger gold pieces and promoting more affordable options like gold-inlaid jade and gold-plated silver. Many have also increased promotions to ease cash flow pressure.
Despite the fallen sales of gold jewelry, gold buyback transactions have rather surged.
"In the past, we might get one or two orders every three to five days. Now, on busy days, we can have six or seven orders. The number of people making purchases has increased significantly, at least by 60 percent," said Zhang Dan, a saleswoman of a jewelry store in Sanmenxia City.
Surging gold prices dampen consumer demand for gold jewelry in Henan
