Gold Jewelry Market Analysis: 52% of Jewelry Retailers' Total Inventory by 2022

Published Date: 2023-01-19
Gold has been loved by people since ancient times. In recent years, as the style of gold products has gradually become younger, many young people will buy gold as a gift for themselves or their elders.

As a special precious metal, gold has the three attributes of commodity, hedging, and currency credit. As a national strategic reserve, gold can guarantee national financial security and maintain currency stability, and play an important role in national economic development.

Before the founding of New China, due to the impact of the war, a large amount of gold flowed out of our country, and the domestic gold industry was also greatly impacted. After the founding of New China, the development of my country's gold industry has roughly experienced three stages. From the earliest stage of the founding of New China , my country's gold industry gradually resumed production. In the 1970s and 1980s, the industry entered a stage of rapid development, and the industry order and technology continued to improve. From the 1990s to the present, after my country's gold industry experienced market-oriented reforms, the industry developed gradually and matured. Global market integration.

Gold has dual attributes of commodity and finance. In recent years, the amount of gold consumption in my country has fluctuated. In 2019, the national gold consumption reached 1151.43 tons, reaching a new high in recent years. In the following two years, my country's gold consumption demand has declined. In 2021, affected by the epidemic, the annual gold consumption demand will further drop to 821 tons, the lowest value in recent years. In the whole year of 2022, my country's gold consumption will be 1,121 tons, a year-on-year increase of 36.5%, and has recovered to near the 2019 high.

From the perspective of the downstream consumption of gold jewelry, first of all, from the perspective of the seller, according to the data, gold products occupy a dominant position in the inventory of Chinese jewelry retailers. According to relevant data, in terms of value, gold products will account for 45% of the total inventory of jewelry retailers in my country in 2021, ranking first among all categories. In 2022, this proportion will rise further to 52%. It can be seen that gold jewelry is more favored by sellers.

The new crown epidemic is still widespread around the world. At the same time, geopolitical tensions have intensified, the role of gold as a safe haven has been further enhanced, and the total gold reserves of central banks around the world have maintained net purchases. These factors have provided strong support for gold prices.

As gold is a currency equivalent and has anti-inflation properties, it is expected that the price of gold will continue to grow steadily in the future, while domestic consumer demand for gold will continue to pick up and grow. Nevertheless, due to various policy factors such as gold's strategic attributes and environmental protection policies, it is expected that my country's gold production will be further tightened.

On the whole, there are many people who buy gold now, usually to wear it for themselves or to give it to others. It is expected that my country's gold industry will develop rapidly in the future.