Under influence of Midas touch
By Zhang Fengming (Shanghai Daily)
Updated: 2006-09-12 10:20 The country's consumers are willing to spend
more on high-end gold jewelry despite, or perhaps because of, high-flying gold
prices, a China Gold Association survey found.
 In a poll conducted in eight cities including Shanghai, Beijing, and
Guangzhou, 11.8 percent of respondents said they will spend more than 5,000 yuan
(US$629) on gold jewelry in the coming year while the figure three years ago
stood at a mere 2.1 percent.
"There is a trend for more high-end jewelry consumption in China as more
people are spending higher amounts on gold jewelry and the price of the yellow
metal is rising," said An Qiongwei, an association official.
More than 46 percent of respondents said they bought gold jewelry in the past
year, reported the survey, which was posted on the association's Website
yesterday.
Gold bullion prices in Asia, London and New York passed US$700 an ounce in
May, the highest level since 1980. Prices dropped in June but later showed signs
of a rebound.
The survey also indicated that 24-carat gold jewelry still dominates the
Chinese market as more than 60 percent of the interviewees said they will opt
for higher-purity products over 18-carat gold.
The 18-carat segment, whose prices are set by the piece, is less sensitive to
fluctuation. The market share of the 75-percent pure gold jewelry rose to 15
percent in 2005 when the industry began heavily promoting 18-karat gold,
according to the World Gold Council.
Chinese have shown a traditional fondness for 24-carat gold jewelry, or 99.9
percent pure gold, as a safe haven against inflation.
The retail sales value of gold in China gained 40 percent due to higher gold
prices in the second quarter. Sales in terms of weight slipped 2 percent to 56.3
tons in the same period.
(For more biz stories, please visit Industry Updates)
|
