Following a period of consecutive declines, the price of gold has now rebounded.
It has been observed that the main domestic gold futures contract has risen for four consecutive trading days. In the spot market, the international spot gold price has also climbed above $4,100 per ounce.
"Recently, there have been more people buying gold compared to those selling," a merchant in Shuibei, Shenzhen—the largest gold and jewelry industry cluster in China—mentioned on the afternoon of July 21. The merchant noted that weekends have been particularly busy lately, with the entire market crowded with people.
Additionally, it has been noted that the price of gold jewelry in Shuibei has increased recently. On July 21, the physical gold price on the Shanghai Gold Exchange was approximately 890 yuan per gram, while the price for gold jewelry in Shuibei was 1,055 yuan per gram. The price for gold bars in jewelry stores was 948 yuan per gram. "The gold bar prices are consistent across the entire Jewelry Plaza; the buyback price is 869 yuan per gram, and the sale price is 948 yuan per gram," one merchant stated.
Recently, with gold prices rising for several days, customer traffic in Shuibei has noticeably recovered. Even on a weekday afternoon, consumers continued to stream in to purchase gold. One merchant mentioned that weekend traffic is even heavier.
When gold prices rise, many gold investors choose to purchase gold bars in Shuibei. It has been observed that the prices for gold bars in Shuibei have recently shown some "divergence."
On the afternoon of July 21, the buyback price for gold bars at various jewelry merchants in Shuibei was 869 yuan per gram, while the sale price for gold bars at jewelry stores was 948 yuan per gram. "Currently, buying gold jewelry costs 948 yuan per gram plus a processing fee," one merchant explained. A visit revealed that processing fees for different gold jewelry items vary, ranging from 20 to 40 yuan per gram. However, gold bars, which previously carried a small processing fee, are now sold without such additional charges.
It is noteworthy that previously, there was a certain price difference between the sale and buyback prices of gold bars among Shuibei merchants, with some offering slightly lower sale prices due to channel advantages. However, the current visit found that all jewelry stores now implement uniform gold prices.
"Currently, the gold prices are the same across all jewelry stores in the market," one merchant stated, adding that there is no room for price reductions at the moment.
Although the price for gold bars in jewelry stores is 948 yuan per gram, it was noted that some shops specializing in gold bars offer lower prices. "Our gold bar price is 892 yuan per gram, which is cheaper because we are a member unit of the exchange," a staff member at one shop mentioned.
It has also been observed that various banks currently sell gold bars.
For example, Industrial and Commercial Bank of China Ltd (HKG: 1398) offers its "Ruyi Gold Bar (Fortune Edition)" in 100-gram specifications. On July 22, the price was 91,600 yuan, translating to a per-gram price of 916 yuan, which is several tens of yuan lower than the gold bar prices in Shuibei's jewelry stores.
With the retail price of investment gold bars significantly lower than that of gold jewelry, many consumers wonder: Would it be more cost-effective to first purchase gold bars from a bank and then exchange them for gold jewelry at a jewelry store, rather than buying finished jewelry directly?
One merchant explained that it is indeed possible to exchange gold bars for gold jewelry, but an additional "refining fee" is incurred during the exchange. "The exchange typically involves a processing fee and a refining fee. Even gold bars purchased from banks incur a refining fee because we cannot use them directly; they need to be processed into plate material," the merchant stated. Currently, the refining fee for gold is approximately 5 yuan per gram. "When all costs are calculated, it ultimately turns out to be slightly more cost-effective than buying finished jewelry directly."
However, it has also been learned that this exchange method has some limitations. Refining fees vary among different merchants, and since gold bars cannot be processed directly, they need to be melted into standard plate material, a process that also involves some processing loss.
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