Inside a jewelry paradise amid China's gold "thirst"

(Dan Tri) - Once a fishing village, Shuibei has now become the epicenter of the Chinese people's "gold rush".

China's "gold capital"

In a vast shopping mall in China, shoppers jostle among gleaming glass cases. The air is filled with excitement as shoppers peruse exquisitely crafted bracelets, necklaces, rings and other jewelry.

The place mentioned is the "gold capital" Shuibei in Shenzhen city (China). Once a fishing village, Shuibei has now become the center of the "thirst" for gold of the Chinese people. Here, there are more than 10,000 businesses trading in gold jewelry.

Gold is increasingly becoming an important store of value for Chinese consumers amid volatile stock markets and a slump in the country's real estate sector.

For locals, gold is a safe haven asset, which helped China overtake India as the world’s top consumer of gold jewelry last year and has fueled a record price rally globally this year.

Walking around Shuibei, one can easily see the undying passion of the Chinese people for gold, even when the economy is in trouble and prices are at record highs. Chinese people have a habit of giving gold to friends and relatives to wish them good luck.

Customers choose gold jewelry at Shuibei market (Photo: Getty Images).

Immortal passion

Laura Ye, a jewelry store owner in the area, said business this year has been slower than last year. “With the economic downturn, every sector will feel the impact,” she said.

But even with rising prices, people are still flocking to buy gold, Ms. Ye said. Traffic jams are frequent, and even finding a parking space for an electric bike can be a chore.

Two young people, Wei and Dai, seem undeterred as gold prices soar and the economy becomes gloomy.

Dai told Bloomberg that she suddenly realized the appeal of gold about three years ago when she noticed the price of this precious metal rising. "I bought three times in 2024," she said. She usually buys small jewelry because the price is suitable for her monthly salary.

According to local authorities, Shuibei sells more than 100 billion yuan worth of gold jewelry each year. Shuibei is China's largest gold jewelry manufacturing and processing center, accounting for about 70 percent of output.

The attraction of Shuibei is the competitive prices and the variety of items on sale. For tourists, visiting this gold market is not an easy task.

Shuibei is China's largest gold jewelry production and processing center (Photo: Getty Images).

"If I were to buy anything, it would be gold."

Over the past year, the price on the Shanghai Gold Exchange has been about $20 an ounce higher than the world benchmark price in New York.

Ray Jia, head of China market research at the World Gold Council, predicts that the economic stimulus packages announced by Beijing in the coming time will once again boost gold demand.

However, he warned that demand for investment gold could face competition from other assets as the economy recovers, including stocks and real estate.

Analysts say the outlook for gold in the country of a billion people remains strong because the precious metal is a symbol of wealth and prosperity.

Song Jiangshen, a researcher at the Guangdong Southern Gold Market Institute, noted that consumers often delay or reduce their purchases when prices rise sharply. "However, this will not change the fundamental drivers of gold consumption in China," he stressed.

That's the view of many visitors to Shuibei. "If I were to buy anything, it would be gold," said hotelier Luo Jiejing, standing outside the market. "Gold has been around for thousands of years and still holds its value. It's a sensible choice."

Source: https://dantri.com.vn/kinh-doanh/ben-trong-thien-duong-trang-suc-giua-con-khat-vang-cua-trung-quoc-20241104135601334.htm