It's fashionable now as Chinese youth drive hard gold trend

Chinese people’s passion for pure gold — for its beauty and luster, as well as its financial worth — goes back centuries. And this yellow metal craze is now running high among the country’s young generation, who have become a major force of gold consumption in recent years.

This shinny metal, a symbol of wealth and good luck as well as a form of international currency for investment purposes, is deeply rooted in Chinese culture, with the country the world’s largest gold consumer and producer.

During the first half of 2023, China saw a sharp increase in gold consumption, surging 16.37 percent year on year to 554.88 tons, according to data from the China Gold Association. Meanwhile, the consumption of gold jewelry reached 368.26 tons, up 14.82 percent from a year earlier, while demand for gold coins and bars soared 30.12 percent to 146.31 tons from January to June.

And its consumers tend to be younger. Latest statistics provided by the online shopping platform Vipshop show that 51 percent of its gold buyers are born after 1990, while the Gen-Z (born after 1995) group has increased by nearly 30 percent from last year.

For young people, gold jewelry is no longer “outdated” or “too flashy.” In the "Insight into Chinese Gold Jewelry Consumption Trends" report issued by the World Gold Council in 2016, only 16 percent of Chinese women aged between 18 and 24 considered buying gold.

Five years later, however, the "2021 China Gold Jewelry Consumption White Paper” showed a dramatic turnaround in gold consumers. The group aged 25 to 50 was the main force, and 75 percent of them were under 35 years old.

“More young people are wearing gold jewelry in their daily life. They are the generation which dares to challenge, break through and have their own life attitudes,” said Wang Lixin, chief executive officer of the World Gold Council China, who was in Shanghai earlier this month to promote hard gold technology. “So gold jewelry also needs to change.”

Innovations in gold with different stylish designs that appeal is one major reason that has caught the attention of young consumers, and hard gold technology provides more such possibilities.

Due to pure gold’s ductile nature, there are many limitations in its application to jewelry design and manufacturing. Its appearance is often in traditional styles, and it is prone to deformation with a limited wearing period.

But the hard gold technology solves the problem. A trace amount of alloy (0.1 percent to 1 percent) is added to improve the hardness of pure gold, making the jewelry less prone to scratching, wearing, and deformation, and allowing for more delicate and exquisite craftsmanship, such as gem-mounting and enamel-coating, both of which offer more stylish appearances.

With this technology, 24-karat gold products can be hollow or three-dimensional, while still hard and firm. Lighter in weight, and bigger in appearance with more designs, hard gold can be sold at more affordable prices while retaining its investment value at the same time.

Recognizing the emerging trend of “China Fashion” among the Gen-Z, the World Gold Council and jewelers have boosted efforts to promote hard gold products in China, which has great consumption potential.

People are encouraged to post their daily wear in hard gold jewelry on Xiaohongshu, China’s leading lifestyle social platform, and have a chance to win a real gold prize.

“The youngsters today have their own way to handle life and see the world,” Wang pointed out. “They are not bound by conventions or stereotypes, and they are embracing various possibilities, which echo with the innovative spirit of the gold industry.”

Ti Gong

Ti Gong

Ti Gong

Ti Gong