Gold Jewelry Stocks Tumble as Precious Metal Prices Plunge

Stock News
Yesterday

Gold and jewelry stocks experienced a collective decline in Hong Kong trading. At the time of writing, LAOPU GOLD (06181) fell 2.66% to HK$621. CHOW SANG SANG (00116) dropped 1.44% to HK$13.01, while LUK FOOK HOLD (00590) decreased 1.02% to HK$25.3. The downturn follows a significant drop in international gold and silver prices on March 19. Influenced by the overnight plunge in global gold prices, domestic gold jewelry prices saw another sharp decline. CHOW SANG SANG's pure gold jewelry prices fell by 104 yuan over two days. Similarly, Lao Miao Gold's pure gold jewelry dropped 105 yuan, and Lao Feng Xiang's pure gold jewelry decreased by 97 yuan over the same period. A recent research report from Oriental Securities noted that sustained high gold prices have noticeably suppressed consumption of gold jewelry in China. Conversely, demand for gold bars and coins, which have stronger investment attributes, has risen rapidly year-on-year and significantly surpassed the volume of gold jewelry sales in absolute terms. Everbright Securities indicated that under the trend of continuously rising gold prices, fixed-price gold jewelry products are gaining greater consumer favor due to their perceived value, as price adjustments for these items tend to lag. However, demand for weight-based gold products may be somewhat restrained.

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