Dec. 26, 2022
Indian Press: the Chinese are beginning to like wearing gold jewelry
The yellow metal is now perfect for the yellow-skinned Chinese and India remains the world's largest consumer of gold -- in large part because Indians like to wear gold jewelry, china is the next largest gold producer. Why don't the Chinese like to wear gold jewelry as much as the Indians do? The reason is simple: gold doesn't suit their skin tone. Jewelry experts say the yellow metal does not match the yellow skin of the Chinese, and the gold loses its luster on the Chinese. Others say that has changed. There are other reasons to discourage the Chinese from buying more gold and jewellery. Although gold has traditionally been seen as a symbol of wealth in China, it has been bought more recently as a hedge against inflation and instability, not necessarily as a trinket. The Chinese are still not big consumers or buyers of gold. China consumes only about half of its gold production, and Chinese households consume the lowest amount of gold among large economies.
Another reason is the traditional Chinese view of wearing jewellery as ostentatious and a waste of money. But that has changed rapidly as China has overtaken the US as the second-largest consumer of gold and jewellery. With per capita purchases of 0.16 grams of gold, the Chinese began to see Gold as a better store of wealth. Gold has also become a favorite investment for the middle class. There is also a trend driving gold purchases in China: there are many pawnshops across the country. In some places, pawnshops act as lenders, and gold jewellery can quickly be monetized. In the new decade, most of the gold will be bought by the Chinese in the form of jewellery. Rural women and low-income people began to buy gold earrings and bracelets because they could easily be monetized to meet urgent needs. Given how quickly the Chinese consume gold, especially in the form of jewelry, China will overtake India as the world's largest gold consumer within two to three years.