(Dan Tri) - Once a fishing village, Shuibei has now become the center of the Chinese people's "gold rush".
China's "gold capital"
In a sprawling shopping mall in China, shoppers jostle among gleaming glass cases. The space is filled with excitement as shoppers peruse exquisitely crafted bracelets, necklaces, rings and other jewelry.
The place mentioned is the "gold capital" Shuibei in Shenzhen city (China). Once a fishing village, Shuibei has now become the center of the "thirst" for gold of the Chinese people. Here, there are more than 10,000 businesses trading in gold jewelry.
Gold has increasingly become an important store of value for Chinese consumers amid volatile stock markets and a slump in the country's real estate sector.
For locals, gold is a safe haven asset, which helped China overtake India as the world’s top consumer of gold jewelry last year and has been a driving force behind this year’s record global price rally.
Walking around Shuibei, one can easily see the Chinese people's undying passion for gold, even when the economy is struggling and prices are at record highs. Chinese people have a habit of giving gold to friends and relatives to wish them good luck.
Customers choose gold jewelry at Shuibei market (Photo: Getty Images).
Immortal passion
Laura Ye, a jewelry store owner in the area, said business was slower this year than last. “With the economy going down, every sector is going to feel the impact,” she said.
But even as prices soar, people are still flocking to buy gold, Ms. Ye said. Traffic jams are frequent, and even finding a parking spot for an electric bike can be a chore.
Two young people, Wei and Dai, seem undeterred as gold prices soar and the economy turns gloomy.
Dai told Bloomberg that she suddenly realized the appeal of gold about three years ago when she noticed the precious metal's rising price. "I bought three times in 2024," she said. She usually buys small pieces of jewelry because they are affordable for her monthly salary.
According to local authorities, Shuibei sells more than 100 billion yuan worth of gold jewelry each year. Shuibei is China's largest gold jewelry production and processing center, accounting for about 70 percent of output.
The appeal of Shuibei is its competitive prices and the variety of items on sale. For tourists, visiting the entire gold market is not an easy task.
Shuibei is China's largest gold jewelry production and processing center (Photo: Getty Images).
"If I were to buy anything it would be gold."
Over the past year, the price on the Shanghai Gold Exchange has often been about $20 an ounce higher than the world benchmark price in New York.
Ray Jia, head of China market research at the World Gold Council, predicts that the economic stimulus packages announced by Beijing in the coming time will once again boost gold demand.
However, he warned that demand for investment gold could face competition from other assets as the economy recovers, including stocks and real estate.
Analysts say the outlook for gold in the country of a billion people remains strong because the precious metal is a symbol of wealth and prosperity.
Song Jiangshen, a researcher at the Guangdong Southern Gold Market Institute, noted that consumers often delay or reduce their purchases when prices rise sharply. "However, this will not change the fundamental drivers of gold consumption in China," he stressed.
That’s the view of many visitors to Shuibei. “If I were to buy anything, it would be gold,” said hotelier Luo Jiejing, standing outside the market. “Gold has been around for thousands of years and still holds its value. It’s a sensible choice.”
Source: https://dantri.com.vn/kinh-doanh/ben-trong-thien-duong-trang-suc-giua-con-khat-vang-cua-trung-quoc-20241104135601334.htm
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