High Gold Prices Weigh on China’s Jewelry Market

Soaring gold prices and economic challenges have dented Chinese consumer spending while also heightening appetite for valuable investments, industry members explained at the recent Hong Kong International Jewellery Show.

The fair reflected the mainland’s difficult, complex jewelry market, which has seen shoppers shift to lower-priced items and shell out less on gold, diamonds, and high-end colored gemstones.

At the same time, the precious metal’s record-high price has enticed buyers in a consumer market known for its focus on long-term value, according to exhibitors at the event, which ended Saturday at the Hong Kong Convention and Exhibition Centre.

“The whole trade has evolved because of the high gold price,” said Winston Chow, chairman of the jewelry advisory committee for the Hong Kong Trade Development Council (HKTDC), which organizes the annual show.

“People, whether consumers or [trade] buyers, buy more when they expect the gold price [to go] up,” he elaborated, speaking at a media event during the show. But since the price…