As the Spring Festival approaches, sales of gold jewelry soar, with some stores experiencing a 165% increase in sales. Zodiac gold and national trend styles are favored. What information is worth noting?

As the Spring Festival approaches, gold jewelry enters its peak selling season. According to several gold shops, despite the current high gold prices, consumers' enthusiasm for buying gold remains strong. In a shopping mall in Beijing, the gold sales area saw many customers arriving shortly after the mall opened its doors. Multiple salespeople informed reporters that as the Spring Festival approaches, the number of customers visiting the store has significantly increased, with over a thousand visitors in a single day during weekends. Among them, gold jewelry featuring the zodiac sign of the Dragon and the “national trend” is favored by consumers. Gold Jewelry Sales Consultant Liu Wei: The most in-demand items are gold necklaces, bracelets, and pendants.Gold Sales Store Manager Yin Lijuan: In December 2023, as we entered the month, sales showed an upward trend, increasing by nearly 165% compared to November 2023.In Jinan, Shandong, many gold shops have also experienced a sales peak.Consumer: I want to give my family a meaningful gift when I go back home at the end of the year. I only go back once a year, so I want to bring a gift that symbolizes safety to my parents.Gold Sales Store Manager Xia Liuxia: Most customers are those who wear gold jewelry for weddings or daily wear, or those who are gifting their elders. Gold jewelry sales are booming, with a 165% increase in store sales. “Zodiac Gold” is highly favored.

Understanding the Price Difference between Gold and Gold Jewelry

It’s crucial to understand the price difference between gold jewelry and gold itself.

Looking back at the past decade’s gold price increase:

2012: 354 RMB/Gram 2013: 282 RMB/Gram 2014: 251 RMB/Gram 2015: 235 RMB/Gram 2016: 267 RMB/Gram 2017: 275 RMB/Gram 2018: 270 RMB/Gram 2019: 312 RMB/Gram 2020: 386 RMB/Gram 2021: 374 RMB/Gram 2022: 416 RMB/Gram.

Over ten years, the price of gold has only increased by 60 RMB per gram.

Frankly speaking, this increase is possibly comparable to bank interest. Therefore, gold has always been considered a stable, value-preserving investment product, suitable for long-term holding, but honestly, the profit isn’t very high.

However, the above is only true for pure gold.

Gold jewelry has an additional cost: the processing fee.

The processing fee is calculated per gram, and most are around 20-30 RMB per gram.

Consider this: the price of gold has only increased by 60 RMB over ten years, but when you buy a piece of gold jewelry, you pay a processing fee of 20 RMB. This means that after buying gold jewelry for ten years, you’ve only earned 40 RMB, which doesn’t even keep up with bank interest rates.

So, if you really want to invest in gold, the best option is to buy gold bars, not jewelry.

Due to the anticipated interest rate cuts by the Federal Reserve, gold priced in dollars may begin to rise.

After all, when the dollar’s interest rates drop, its value depreciates, and the nominal price of gold worldwide increases.

From this perspective, there is a driving force for gold prices to rise this year.

Of course, the purpose of this news is also to encourage consumption.

After all, with the New Year, gold has always been a favored ornament, particularly among Chinese women, for its beauty and value-retention and appreciation potential.

From a male perspective, if my wife really wants to spend money on jewelry, I’d prefer her to buy gold over diamonds or jade, as it’s at least more straightforward…

Understanding the Fluctuation Mechanism of Gold Prices

Discussing the intrinsic mechanism behind the fluctuation of gold prices.

Firstly, there is a high correlation between gold and the U.S. dollar index. To understand this, we need to explain what the U.S. dollar index is.

The U.S. dollar index is a weighted result of the dollar against six major currencies (Euro, Japanese yen, British pound, Canadian dollar being the main ones). Thus, when the U.S. dollar index strengthens, it can be seen as the dollar appreciating against these major currencies.

Below is a chart showing the relationship between the U.S. dollar index and the international price of gold.

At the beginning of 2022, the United States started raising interest rates, from 0.5% in January to 4.5% by December, and then the pace of rate hikes relatively slowed down. During the rapid interest rate increase, the U.S. dollar index rose quickly, then gradually declined.

When the U.S. dollar index increases, the price of gold decreases, and vice versa.

Why does a strong U.S. dollar index lead to a fall in international gold prices? This can be understood from two perspectives:

Firstly, from a pricing perspective. Gold is priced in U.S. dollars, so a stronger dollar means that each dollar can buy more gold, hence the fall in gold prices.

Secondly, from a transmission perspective. If the dollar appreciates, those holding gold may sell it for dollars to gain expected returns. Conversely, if the dollar depreciates, those holding dollars may buy gold to hedge against the depreciation pressure, leading to a rise in gold prices.

Anything that can affect the U.S. dollar index may also affect the price of gold.

For example, let’s look at two events that happened in March this year. The first was a problem with a U.S. bank, and the second was the gradual slowing down of interest rate hike expectations. These two events are related; due to the U.S. banking issue, the market bet that U.S. rate hikes would slow down, leading to a decline in the U.S. dollar index. This, in turn, led to the rise in international gold prices that began in March.

Why do U.S. interest rate hikes/ cuts affect the U.S. dollar index? We can understand this simply from the perspective of interest rate arbitrage. Suppose you are a wealthy individual with a liquid capital of 1 billion U.S. dollars that needs to be deposited in a bank. Let’s say that at the beginning of 2020, both the UK and the US had a deposit interest rate of 1% per annum. At that time, there was no difference for you whether the money was deposited in the UK or the US, with an annual interest of 10 million U.S. dollars. You, adhering to a principle of fairness, deposited 500 million U.S. dollars in the U.S. and the equivalent in pounds in the UK.

Suddenly one day, the Federal Reserve announces an interest rate hike, causing the interest on U.S. bank deposits to rise to 3%. You realize that the same 500 million U.S. dollars would only yield 5 million in interest in the UK but 15 million in the U.S. due to the interest differential. You call your secretary to notify the UK bank that you will withdraw all your money, convert it to dollars, and deposit it into a U.S. bank.

Not only you but many large investment institutions also discovered this arbitrage opportunity. Thus, they began borrowing at low interest rates from UK banks and depositing it in U.S. banks to earn the interest differential. This process is called “interest rate arbitrage”.

As you discovered a significant “interest rate arbitrage” opportunity between the UK and the U.S., you borrowed 1 billion pounds from a UK bank at low interest, planning to deposit it in the U.S. to capture the interest differential.

However, you have pounds, which cannot enjoy the interest of dollars in U.S. banks, as bank interest is tied to the currency. That is to say, before depositing the pounds into the U.S., you need to exchange the pounds for dollars. Thus, you buy dollars on the foreign exchange market with pounds. This process is the foreign exchange transaction.

More and more people began borrowing pounds from UK banks at low interest rates and buying dollars on the foreign exchange market, making the dollar increasingly sought after and “expensive”. Previously, 100 pounds could buy 120 dollars; now, 100 pounds can only buy 110 dollars. The dollar has become “more expensive”, and correspondingly, the pound has become cheaper, which is currency depreciation.

U.S. interest rate hikes lead to an appreciation of the dollar (reflected as an increase in the U.S. dollar index), while cuts or slowdowns in rate hikes lead to a relative depreciation of the dollar (U.S. dollar index sliding).

The chart below shows the data of the U.S. dollar index and Comex gold closing prices. The shaded part is the situation since October, showing that since then, the U.S. dollar index has been declining, likely due to continually weakening rate hike expectations. As the U.S. dollar index weakens, gold prices have been rising.

Secondly, policies of various countries can lead to a divergence between domestic and international gold prices.

From March to July 2023, international and domestic gold prices were largely in sync, but starting in August, a divergence began, with domestic and international gold prices separating. The core reason here is that China, to prevent the depreciation of its currency, limited the import of gold, causing a gap in domestic gold supply and demand, leading to a significant deviation between domestic and international gold prices.

Around mid-September, China lifted these restrictions. Logically, the price gap between domestic and international markets should narrow. At that time, our planet’s “Zoe’s Reading Circle” discussed this issue, and I recommended an article that clearly stated, “The domestic-foreign gold price gap has been widening since early July. Traders and people within the regulatory system indicate that the domestic gold price premium is largely due to import restrictions.” The article also mentioned that around mid-September, “The Chinese central bank lifted temporary gold import restrictions on some banks.”

In October, domestic gold prices suddenly plummeted, likely due to two reasons. The first is the strengthening of the U.S. dollar index, and the second is the inevitable narrowing of the price gap between domestic and international markets after lifting import restrictions.

According to an analysis by Founder Securities, the recent strengthening of the U.S. dollar index is due to several reasons: “First, Federal Reserve dovish officials made hawkish statements, which supported the U.S. dollar index; second, the European Central Bank’s continued interest rate hike expectations decreased, which negatively affected the euro and positively affected the dollar; third, the U.S. government faced a shutdown, leading to a demand for safe-haven assets which supported the dollar; fourth, there’s a strong expectation of a soft landing for the U.S. economy, which continued to pull up the U.S. dollar index.”

The strengthening of the U.S. dollar index and the fall in gold prices, along with the expectation of narrowing domestic and international price gaps, may relate to these series of factors.

After October 2023, expectations of U.S. interest rate cuts became stronger, the U.S. dollar index declined, and gold prices continuously rose.

This is the rough logic.

This article’s content is based on discussions and articles about gold prices from “Zoe’s Reading Circle”.

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Gold Jewelry Sales Surge! Some Stores See 165% Increase in Revenue

According to CCTV Finance on January 4, 2024, as the Spring Festival approaches, gold jewelry enters its peak sales season. Reporters learned from various gold stores that despite the current high price of gold, consumer enthusiasm for purchasing gold remains undiminished. In a shopping mall’s gold sales area in Beijing, reporters observed that many consumers came to shop soon after the mall opened.

Sales staff reported that as the Spring Festival approaches, the number of consumers visiting the stores has noticeably increased, with weekends seeing over a thousand visits per day. Among these, gold jewelry featuring the Year of the Dragon and the “National Trend” style are particularly favored by consumers.

Gold jewelry sales consultants indicated that the most demanded items are gold necklaces, bracelets, and pendants.

According to a store manager of a gold sales outlet, sales have been on an upward trend since December 2023, with revenue in December increasing nearly 165% compared to November 2023. In Jinan, Shandong, many gold stores also welcomed a sales peak. Some consumers expressed their desire to bring home gifts symbolizing peace and safety to their families, as they only return once a year.

In 2023, influenced by multiple factors including central banks' gold purchasing, gold performed well. Looking at the futures prices, COMEX gold accumulated an increase of 13.45% over the entire year of 2023, marking the largest annual increase since 2020. On December 4, 2023, the international price of gold broke through the $2100/ounce barrier, reaching a high of $2152.3/ounce, setting a new historical record. Entering 2024, the market overwhelmingly favors a bullish outlook on gold prices.

According to Securities Daily, “Under the expectation of the Federal Reserve’s interest rate cuts, gold still has the opportunity to hit new historical highs at the beginning of 2024.” Liu Siyuan, chief analyst at Leadshow Finance, expressed in an interview with Securities Daily that for the trend in the second half of 2024, after the Federal Reserve fulfills its expectation of cutting interest rates, bears might counterattack, therefore, the annual price of gold might show a trend of “rising and then pulling back.”

Yu Xiaoming, a senior investment advisor at Jufeng Investment Consulting, told reporters, “Gold prices might continue to rise in 2024, setting new records. On one hand, global inflation pressure continues to weaken, and the tone of major central banks abroad began to change from super ‘hawkish’ to milder, eventually turning ‘dovish’ before the end of last year, which will be favorable for gold prices. On the other hand, the market expects the Federal Reserve to start cutting interest rates as early as the end of the first quarter of 2024, which will also drive up the price of gold.”

CaiXin Securities research report believes that the current round of rate hikes by the Federal Reserve may have ended, and U.S. interest rates may remain at a higher level for a while before turning around. With the U.S. dollar index and U.S. treasury real yields going down, the price of gold is rebounding. Coupled with the emerging signs of recession in major developed economies in Europe and America, the mid to long term outlook remains bullish for a rise in the central price of gold.

Yang Haiping, a researcher at the Securities Futures Institute of Central University of Finance and Economics and General Manager of the Research and Development Department of Inner Mongolia Bank, told reporters, “The end of the Federal Reserve’s interest rate hiking cycle and the timing of the start of rate cuts” will be the most important factor affecting the trend of gold prices.

Yang Haiping stated that, driven by global de-dollarization and considerations for hedging and value preservation, the continuous increase in gold allocation by global central banks will provide strong support for gold prices. In 2024, gold prices are expected to hover at high levels, and the probability of gold prices reaching new highs is quite significant.

This article is a comprehensive report from CCTV Finance and Securities Daily.

(Disclaimer: The content and data of this article are provided for reference only and do not constitute investment advice. Verify before use. The risk is borne by the user.)

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The Year of the Dragon in Chinese Culture

The dragon, as a totem in China, brings a unique atmosphere to the market every time it’s the Year of the Dragon.

However, it is believed that the following year will be a “Widow’s Year,” meaning there won’t be a traditional start of spring (“立春” in Chinese Lunar Calendar).

“Widow’s Year,” also known as “Silent Spring” or “Widow Year,” refers to a lunar year without the occurrence of “立春” (start of spring). The start of spring appears at the end of the previous year’s lunar December or the beginning of the next lunar January, for example, in 2002, 2005, 2008, and 2010.

Folklore calls this year a “Widow’s Year,” and it is considered inauspicious for marriages. It is believed that if a marriage takes place in this year, the bride may become a widow. As a result, many people rush to get married before the Spring Festival, and the demand for gold items surges.

The “Widow’s Year” is simply a coincidence between the lunar calendar and the Gregorian calendar. The absence of “立春” is merely a difference in the timing of various calendars and has no influence on the natural cycle of seasons or personal life.

However, for those who are descendants of the dragon, purchasing zodiac-themed gold items or items with a nationalistic style during this year is not unreasonable. I also want to buy some because the next Year of the Dragon will be twelve years away, and no one wants to wait that long, especially if they have children born in the Year of the Dragon. These items make significant and valuable New Year gifts for children.

The Popularity of Gold in China: A Different Perspective

Compared to something as volatile as diamonds, gold is indeed a much safer bet.

News frequently reports that the younger generation in third and fourth-tier cities in China is increasingly investing in gold. This may be because there aren’t many attractive investment options available.

The surge in demand for gold, coupled with the sluggishness in the stock market and real estate, the pitfalls of diamond investments, and decreasing savings account interest rates, have all contributed to the recent rise in the price of gold.

However, every year around the Lunar New Year, gold jewelry experiences a boom in sales. This is different from investment gold; it’s gold used for consumption.

Recently, some of my friends who are planning to get married are also interested in buying gold around the Lunar New Year due to the various discounts available.

Moreover, with the start of a new year and a new Chinese zodiac animal, gold jewelry in this category tends to sell well.

If you want to give a small gift or need to buy gold jewelry for a wedding, or if you simply like gold jewelry, all of these are valid reasons.

Consumption, while not a way to make money, is still a better choice compared to diamonds, emeralds, jade, and other gemstones.

However, a statement reveals that many consumers purchase gold without considering it as an investment: “The nationalistic trend has given cultural value to gold jewelry. Collaborations with animated characters awaken childhood memories. Compared to plain gold bars, more people are willing to pay for creative internet-famous gold jewelry.”

For those who genuinely consider investing in gold and aim to preserve their wealth, the appearance doesn’t matter as much as the ability to exchange it for cash. That’s true investment.

In this context, most young people buy gold simply because they believe it’s less risky than diamonds. They don’t think too much about making money in the future; they’re buying gold for consumption.

In the previous gold market boom, the “Chinese aunties” were mocked by the media for many years. In the next round, it’s the “small-town youth” buying gold who might face ridicule.

However, the “small-town youth” probably won’t mind because they likely approach buying gold with a consumer mindset. As long as it’s better than diamonds, they’re happy, and their attitude is much better than that of the “Chinese aunties” who were genuinely trying to profit by buying gold.

In third and fourth-tier cities, the per capita consumption of gold jewelry has increased from 460.7 yuan in 2017 to 617.5 yuan in 2022, with a compound annual growth rate of 6.0%.

76% of gold shop customers are aged 25-35,

The willingness to purchase gold jewelry among people aged 8-24 has increased from 16% in 2016 to 59% in 2021.

The penetration rate of gold jewelry in third and fourth-tier cities exceeds 70%.

The lack of attractive investment options and the high risks associated with diamonds have driven up the penetration rate of gold.

Recently, the central bank (People’s Bank of China) has been consistently holding gold reserves. As of the end of November, the central bank’s gold reserves stood at 71.58 million troy ounces, an increase of 380,000 troy ounces compared to the previous month, marking the 13th consecutive month of increasing gold reserves.

The central bank holds gold mainly because it doesn’t want to invest in U.S. Treasury bonds and prefers long-term gold holdings. The central bank’s strategy for investing in gold is a long-term one.

In any case, if you are getting married, giving a gift, or simply love gold, don’t overthink it. You can buy it. It’s much better than buying all sorts of miscellaneous jewelry. If you want to invest and make money, gold may be a bit expensive right now. Wait for the gold frenzy to cool down; don’t rush into it. Gold prices have been rising for several years, and the media always reports on making money and soaring prices. There’s likely no opportunity left for investments.

Moreover, consider investing in gold through ETFs or gold bars to minimize costs. Other types of jewelry are not as practical, and it’s better to save your money in a bank account because the fees for selling jewelry are too high. At the very least, you can preserve your value over a decade or so, but there’s no investment value in jewelry. Be clear about this distinction.

The Love for Gold: A Consumer’s Perspective

Today, let’s talk about gold not from an economic standpoint, but purely from a consumer’s point of view.

I remember many years ago when my spouse and I were buying wedding rings, we both decided to go for platinum. At that time, we thought gold was cheap and somewhat “tacky.” Little did we know that the “tacky” ones were us; tradition always holds its value!

In fact, even when gold prices hadn’t surpassed platinum, when strolling through jewelry stores, most of the time, the same style of jewelry in gold was more appealing.

Look at it this way, even platinum bracelets with diamonds, no matter how dazzling they are, can’t compare to the joy that a gold bracelet brings. It doesn’t matter whether it’s 18K gold or not.

Compared to thousands of years of natural selection by our ancestors, our relatively small industrial civilization of just a few centuries finds it hard to overturn the deeply ingrained aesthetic sense of simplicity.

Just like this mask, the bronze one is “simple” and “solid,” while the gold one is “elegant” and “graceful.” If it were made of silver, or even platinum, wouldn’t they all have a cold, stainless steel-like appearance? It’s hard to compete with the allure of gold!

I don’t know when I began to understand the Chinese “gold worship,” but at least after some introspection, I’ve gained a deeper understanding. A gold bar can do wonders, whether it’s for saving lives or advancing in one’s career. However, why does this gold bar not look as good as the ones from the Sanxingdui civilization thousands of years ago?

Women, in particular, openly express their deep affection for gold, with even revolutionary fighters like Cuiping smiling so radiantly.

Of course, ultimately, enlightenment prevails over aesthetics. Cuiping secretly hid the gold bar in the chicken coop, after all, “three gold bars can buy a lot of guns”!

“Storing gold bars in the chicken coop” also illustrates another reason why ordinary people love gold - its durability. It’s not delicate at all, and you don’t mind it getting scratched or bumped. In prosperous times, it can serve as a useful table shim, stable yet not too hard. In chaotic times, it can even be exchanged for life-saving supplies!

Gold, I appreciate you.

The Reasons for Buying Gold: A Perspective on Preservation

There are countless reasons why people buy gold, but in reality, there is only one reason - to preserve value.

As current property prices continue to decline, interest rates are on a continuous downward trend, and the Shanghai Composite Index struggles around 2900 points, many people are turning to gold as their top choice when they are uncertain about where to invest.

However, the current reason for buying gold is not just preservation; it’s because the price of gold is rising.

In 2023, news of gold reaching 600 yuan/gram often appeared in the public eye, igniting waves of excitement. However, this so-called 600 yuan/gram is actually the price set by jewelry stores, while the spot gold price is only around 400 yuan.

But the promotion of 600 yuan can easily lead to some misconceptions.

In the long run, buying gold can indeed preserve value.

If you simply like gold jewelry, it’s okay to buy a bit.

If you’re looking to profit from price increases, then you should think twice.

Currently, the price of gold is indeed at a high level, and if you’re investing, there’s a good chance you’ll be locked in for several years or even decades. If you don’t have a lot of disposable income, it’s not recommended to invest in gold.

Although gold is considered a store of value, it doesn’t mean there won’t be losses.

In recent years, the price of gold has fluctuated significantly, which indicates risk.

At its lowest, it was $1600 per ounce, and at its highest, it reached $2100 per ounce.

With a longer timeline, your understanding of the risks may become clearer.

If you have ample funds, you can patiently wait for the price of gold to recover if it becomes locked.

Even when it recovers, it may only return to the original purchase price.

But don’t overlook the compounding effect of keeping your money in the bank for over a decade.

Even if you unlock your investment, it may still result in a loss.

The concern is when you need to sell your gold, and its price is at a low point, selling at a loss can be painful.

Therefore, it’s essential to approach gold consumption with rationality.

Gold vs. Jewelry: Understanding the Difference

As the A-shares continue to plummet, breaking the 2900-point mark, and uncertainties loom in the world of bank wealth management with questionable bonds and high-risk municipal debts, the Chinese real estate market confirms its downward trend with falling prices and sales volume. To add to the mix, banks have also lowered deposit interest rates in December. With limited avenues for stable and profitable investments, many people are turning their attention to gold.

However, if your goal is to preserve and increase your wealth, it’s essential to distinguish between jewelry and gold. Currently, there’s a trend in the media that forcefully associates preservation and appreciation with jewelry. In December, the main promotional approach encourages residents in third- and fourth-tier cities, especially young people, to purchase jewelry. But does gold preservation necessarily mean that jewelry preserves its value?

Anyone who has bought jewelry knows that selling it back is typically only done through the original store. If you try a pawnshop, you’ll receive the market value for gold, minus labor costs, which ultimately results in a net loss, plus additional expenses for melting it down. Jewelry often comes with high transaction fees. Nowadays, some brands charge transaction fees that exceed 30% of the gold’s intrinsic value. When you buy a product at a 30% premium, it’s challenging to achieve preservation and appreciation objectives.

When you attempt to sell gold jewelry, the price is usually around 30% lower than the market price, and sometimes it doesn’t even cover the material cost. This is because during the jewelry crafting process, other metals like copper and silver are added to make it easier to mold. Consequently, investing in gold jewelry can easily lead to a situation where you “buy high and sell low.”

In fact, a recent incident involving the purchase of gold jewelry in Anhui has attracted widespread attention. A customer claimed to have purchased a gold jewelry piece worth 16,000 yuan but was informed that changing the design within an hour would incur a 35% depreciation fee, equivalent to 5,600 yuan.

This is a real incident that happened at Old Temple Gold in Anhui, not a popular internet brand. A 35% depreciation fee indicates that, in the eyes of jewelry retailers, they are well aware that no one will take it at 65% of the original price when you sell it to a pawnshop. So, it depreciates by 35% as soon as you buy it.

Currently, there’s a concerning trend in the media where they continue to promote the necessity for residents in third- and fourth-tier cities, especially young people, to buy jewelry. A few days ago, there was even a trending topic on Zhihu with the title, “Young People Are Obsessed with Buying Gold, Saying That Gold Satisfies More People’s ‘Want to Spend Money While Saving Money’ Psychological Needs.” It seems like getting the middle-aged ladies in the vegetable market to buy A-shares and getting the young people in third- and fourth-tier cities to buy jewelry are essential KPIs for the media’s year-end assessment.

But on second thought, compared to diamond jewelry, gold jewelry is still relatively resilient, at least gold prices have been rising this year. According to CCTV Finance, for the past few decades, diamonds have been the darling of the luxury goods market, but in the past year, certified diamond prices have fallen by 35% to 40%.

In 2019, the Chinese Academy of Sciences successfully developed “synthetic diamonds” and piloted the technology in Henan. In just two years, Henan has become the world’s largest diamond-producing base, accounting for nearly half of global production.

Compared to natural diamonds, Henan’s synthetic diamonds not only look authentic but also surpass them in quality. According to a 2021 survey by Guosen Securities, Chinese-made 3-6 carat diamonds in 2020 reached the highest D-grade color and VVVS-grade clarity.

Bain & Company data shows that in just three years, the production of Chinese synthetic diamonds has grown to 4 million carats, with 47% of global diamond production coming from Henan. At the same time, international diamond prices have dropped an average of 65%, signaling the end of the era of “sky-high diamond prices.”

This shift has led young people this year to favor gold over diamonds when buying jewelry.

In conclusion, if you want to buy jewelry to adorn yourself while minimizing depreciation losses, you can consider gold jewelry instead of diamond jewelry. However, if you are looking to preserve or increase your wealth, it’s crucial to understand the difference between jewelry and gold.

I don’t think you’d want to build a new reservoir, this is not feasible.

Everyone knows that buying gold is a way to hedge against risk.

However, Chinese middle-aged women obtain gold by purchasing gold jewelry.

As for the normal year-end rush for gold, after all, gold has certain safe-haven and monetary attributes, and ordinary people generally recognize its value. Therefore, many people choose to purchase gold. It not only pleases their elders but also serves as a relatively stable investment. Gold is indeed a good commodity. However, it’s worth noting that there are certain processing costs associated with gold jewelry, and the final price may differ from the market gold price.

This is the second trending topic related to the Chinese zodiac signs that I’ve seen. How much money do you need to spend to trend with two topics? Money isn’t that easy to fool around with.

Investing in Gold: A Safe Haven and Hedge Against Inflation

Buying into the gold rush seems to keep getting better and better. What you’re buying is not just gold, but also the anticipation of preserving your wealth.

Gold, as a traditional safe-haven asset, boasts characteristics such as wealth preservation and inflation resistance. Therefore, when the economy becomes uncertain or inflation expectations rise, people tend to buy gold as a way to safeguard their wealth. Additionally, gold serves as a significant investment tool, used to hedge risks associated with other investments.

With the current economic situation in plain view, stocks and bonds have become risky, bank deposit interest rates continue to decline, and there’s room for further decreases in the future. What can you do with your money? Starting your own business carries significant risks, and bank savings struggle to keep up with depreciation and inflation. Investing in the stock market often leads to losses, and buying property might not be feasible at the moment. Earning money is not easy, and preserving and increasing its value is even harder. Foreign currencies that preserve value are hard to come by, so why not invest in some gold with the hope of offsetting depreciation?

Moreover, in recent years, various factors like increased geopolitical risks have also driven the demand for gold.

I belong to the Dragon zodiac sign, and I’m contemplating whether to buy a zodiac gold item. I haven’t treated myself to gold before. January 15, 2024.