Despite achieving record-high gold prices globally, consumers in China are still lining up to buy gold. This is happening at a time when gold prices continue to hit the roof on both international and domestic markets, shattering all previous records. On Tuesday, the spot price of gold reached a record high of $2,000 per ounce. However, in Kerala, one gram of gold was sold at a price that reflected this international trend, and consumers generally lost interest in buying gold due to such high prices.
Demand in China is more buoyant because of the gold market. Reports from international media emphasize that though the prices are going up, the demand is rising in China. This phenomenon can be explained by the cultural and astrological beliefs prevalent in the country. The Chinese zodiac, for example, attributes symbolic meanings to certain years, and 2025, the year of the snake, is particularly significant.
Chinese astrology has defined the year of the snake as transformation, knowledge, peace, and creativity. It is said that many people will experience significant changes in their lives because of the snake's influence, forcing them to look for stability or auspicious items such as gold, which is associated with good fortune. This belief is actually reflected in the increased demand for gold jewelry and other gold items during the Chinese New Year period, particularly during the Spring Festival run-up.
According to several media reports, consumers in southern China, particularly in regions like Guangdong, Shenzhen, and Shanghai, have been reportedly queuing up outside jewelry stores to purchase gold ornaments. Demand for gold items under the symbolism of this snake is increasing, with various sellers reporting that gold jewelry featuring snakes has sold out fast. For instance, a local consumer in Shanghai, whose intention was to buy a gold bracelet with a snake design to be given to his mother, already found that it had sold out.
This rising demand is not just an individual sentiment but also a broader trend across the nation. The combination of the auspicious cultural beliefs surrounding the year of the snake and the high value of gold is driving consumers to make these purchases, as they believe it will bring them luck, prosperity, and protection in the coming year. The increasing demand for gold in China has been consistent, and it reflects the close relationship between cultural beliefs and consumer behavior, demonstrating how astrological beliefs can affect the economy and even increase commodity sales.
Experts in the business, like Information and Communication Economy Association's Pan He Lin, have suggested that the increasing trend of gold demands indicates a deep connection between consumers' belief system and purchasing power. It indeed appears that amidst the general rising trend of price in the globe, China, with its very own astrological influences, seems to ensure this country remains to be one of the biggest buyers of gold in the world.