Gold Price Soars by 30 Yuan in Half a Year, Gold Recycling Market Boils Over
As the saying goes, "gold at nine and silver at ten," which also applies to the gold market. On September 19th, Beijing Business Daily reporters visited major jewelry stores and found that the gold price continued to rise, with some brands' retail prices rising from around 600 yuan per kilogram in early September to around 610 yuan per kilogram, a increase of over 20% compared to last year's same period of 496 yuan per kilogram. Investment-grade gold also saw a certain level of price increase, with Baibu Jewelry's sales price rising from around 467 yuan per kilogram in early September to today's 469.8 yuan per kilogram, and Chow Sang Sang's investment gold prices rose from around 535 yuan per kilogram in early September to today's 550 yuan per kilogram.
Just like the gold price, the gold recycling market has also seen a significant increase. Shenzhen Water Bay Gold Co.'s Mr. Zhang told Beijing Business Daily reporters that the current gold recycling price is around 460 yuan per kilogram, up from around 436 yuan per kilogram six months ago, an increase of about 30 yuan. Due to the high gold price, many customers are coming to recycle their gold, and the amount of recycled gold has exceeded two times the previous level.
According to Mr. Zhang, generally speaking, Water Bay Gold Co.'s gold recycling prices are within the market price minus 10 yuan per kilogram, while brand-name companies' recycling prices are slightly lower. Beijing Business Daily reporters found that not many gold brands offer recycling services, with Zhou Bi'an and Lao Pu Gold saying they cannot recycle, but can exchange for cash. Chow Sang Sang offers recycling services at some offline stores, with a price of 450 yuan per kilogram. If customers choose to exchange their gold through Chow Sang Sang, they need to pay an additional 85 yuan or so in depreciation fees, and non-Chow Sang Sang jewelry requires an additional 5% wear-and-tear fee. China Gold Recycling Platform's current recycling price is 470.06 yuan, but a service fee of 3 yuan per kilogram is charged for Chinese brands, 10 yuan per kilogram for other brands, and 20 yuan or so for packages under 20 kilograms.
Although different recycling methods have certain price differences, overall it remains a good time to sell gold products. Mr. Zhang gave reporters an example: "If a customer comes in with two 100g gold bars bought at the beginning of the year at 390 yuan per kilogram, and sells them at today's market price, they can make a profit of 15,000 yuan." Additionally, according to Jinan Evening News, a customer from Hangzhou Linping sold 600 grams of gold in one go, making a profit of 330,000 yuan.
"At present, if you have a lot of physical gold in your possession, it's worth considering selling. The current gold price is at an all-time high from the perspective of preserving value and anti-inflation." Gold senior investment analyst Lin Dahuai believes.
Guangzhou Tongxin Investment Consultant Co.'s general manager and professional gold investment analyst Lu Chaohua also thinks, "Recently, the domestic gold market has seen a significant surge, with Shanghai Gold Exchange's gold TD setting a new high of 480.50 yuan per kilogram. Many physical gold holders are rushing to sell their gold or jewelry, causing the industry's old gold recycling volume to double-fold. Due to the current international and domestic gold price discrepancy, it is still a wise choice to sell your gold at hand." He further points out that "because the global gold market is unlikely to have a large price difference for long, the domestic gold price will eventually return to a level matching the international market's price. After the Shanghai Gold Exchange set a new high on September 15th, the market began to appear differentiated, and the selling force gradually increased, causing the gold price to fall below 470 yuan per kilogram, with a risk of significant decline; while international spot gold started to rise from $1,900 an ounce. Domestic and international markets are again running in opposite directions. It is expected that the two will continue to run in opposite directions for another phase before the domestic gold price eventually returns to following the international market's fluctuations."
"However, when consumers sell their gold, they should prioritize choosing a reputable gold recycling company with a reasonable recycling price. Generally speaking, recycling prices are calculated based on the daily spot price of the Shanghai Gold Exchange minus a few yuan per kilogram, and customers need to pay attention to the accuracy of the weighing instrument to prevent unscrupulous merchants from cheating them." Lu Chaohua said.
Beijing Business Daily reporter Cai Yuwei