Brand Gold Jewelry Faces Price Hike Again, Some Products Trigger "Rush Buying"

Source: Securities Times Network Author: Wu Jiaming

International gold prices remain high, and the related pressure is gradually passing through to consumer-facing gold jewelry prices. Recently, several brands’ fixed-price gold jewelry has experienced a new wave of price increases, with some products even triggering a rush to buy.

On February 26, Laopu Gold’s Tmall flagship store launched a promotion. Within less than 10 minutes of opening, many products were sold out or taken off the shelves. The reporter saw that even gold bowls priced over 600,000 yuan were marked as “sold out.” Customer service staff said that Laopu Gold will adjust product prices on February 28. Details of the price adjustments will be based on the actual online and offline prices. There are also reports that Laopu Gold stores in multiple cities have caused queues and rushes to buy, with some stores even limiting in-store experience to 30 minutes during peak hours.

Recently, there have been rumors that Chow Tai Fook will adjust gold product prices after the Spring Festival. The price adjustment is expected to officially start in mid-March, focusing mainly on fixed-price products, with an expected increase of 15% to 30%. However, specific details and timing of the adjustments will depend on the in-store price tags.

“Fixed-price” gold jewelry usually refers to gold accessories priced per piece, including labor and brand value, often costing much more than gold priced by gram, but generally with better design. Unlike traditional gold shops’ “market gold price + labor fee” pricing model, most brands adopt a “fixed price + periodic adjustment” strategy, with adjustments occurring about two to three times a year. Industry insiders say that amid the ongoing rise in gold prices this year, the price increases of most brand gold jewelry main products are still below the rise in gold raw material prices, leaving room for price adjustments. “Fixed-price” gold jewelry offers higher cost performance, making it more attractive despite higher premiums.

Some consumers told reporters that the recent increase in gold prices over the past few years has covered part of the premium on fixed-price gold jewelry, making early buyers feel they gained value. Coupled with the general expectation that gold prices will continue to rise, high-premium fixed-price gold jewelry remains popular.

Currently, the main controversy regarding fixed-price gold jewelry is whether sales stores inform customers of the weight and after-sales rules. The reporter found that many brand tags only listed the price and craftsmanship, without indicating the weight. Market insiders also remind that fixed-price gold jewelry should also display weight information so consumers can make informed choices. Additionally, if future “trade-in” or recycling is desired, the valuation of fixed-price gold jewelry will mainly be based on weight.

(Edited by: Wen Jing)

Keywords: Gold Gold Jewelry