Jewelry stores spark a price hike wave; fixed-price products become the "most popular"

Financial Times Reporter Ye Maisui

Geopolitical tensions in the Middle East have further intensified gold fluctuations.

The Financial Times reporter notes that since the beginning of this year, the domestic gold jewelry market has experienced successive price hikes. First led by Chow Sang Sang, then Chao Hongji, Baolan, Linchao, Junpei, Laopu Gold, and other brands have joined the price increase wave, with generally over 10% rise. Interestingly, when gold prices hit historic peaks, the significant price hikes by brands not only failed to deter consumers but also triggered synchronized online and offline rushes to buy.

Fixed-Price Products See Price Hikes

Gold jewelry has become this year’s “most popular,” with scenes of queues, instant sell-outs, and markup reselling happening at high-end malls in Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, and other cities, both in physical stores and online flagship shops. Even as gold prices overnight surged by tens of thousands of yuan, consumers continued to flock.

On March 9, Junpei Jewelry adjusted prices across its products. A 50-gram bamboo bangle, priced at 97,530 yuan on March 8, was directly listed at 143,080 yuan on March 9, a nearly 50,000 yuan increase overnight, a rise of over 46%.

Smaller weight gold jewelry shows more obvious per-gram price increases. An 8-gram bamboo chain on March 8 was priced at 15,100 yuan, and after adjustment on March 9, it was 23,780 yuan, a 57.5% increase, with the per-gram price approaching 3,000 yuan. A 9-gram Pixiu bracelet rose from 22,125 yuan to 29,450 yuan, about 3,272 yuan per gram; peony flower earrings weighing 4.6 grams increased from 8,850 yuan to 13,390 yuan.

Junpei is just a microcosm of this wave of gold and silver jewelry price hikes. Early in 2026, many gold brands adjusted prices successively, with fixed-price products being a focus of this round of increases. Chow Sang Sang led the price hikes in January, with increases of about 5% to 15%; Chao Hongji followed closely, with overall increases of 10% to 20%. Meanwhile, traditional gold brands Linchao Jewelry and Baolan also completed price adjustments at the end of January and early February, respectively.

On February 28, Laopu Gold launched its first round of price increases this year, with a 20% to 30% hike. Before the official price increase, many products on its Tmall flagship store were snapped up. On February 26, combined with the “spend 1,000 yuan and get 100 yuan off” promotion, sales in just one second exceeded 300 million yuan, with total daily sales surpassing 1 billion yuan. Collectible items such as a gold bowl priced at 627,500 yuan, a gold gourd at 560,900 yuan, a gold toad at 300,000 yuan, and a gold Ruyi at 469,100 yuan sold out within 10 minutes.

As the “Hermès” of gold jewelry, Laopu Gold is one of the biggest beneficiaries of this gold price rally. With gold prices continuously hitting new highs, market demand for gold jewelry has sharply increased. Gold jewelry has become not only decorative items but also a store of value and investment. Before each price hike, Laopu Gold’s stores are always crowded.

It is reported that about 50 Laopu Gold stores nationwide are located in high-end shopping districts such as Beijing SKP, Shanghai Henglong, Shenzhen MixC, and Guangzhou Taikoo Hui, with no expansion into lower-tier markets. Due to the accelerated opening of new stores, this number is expected to grow further this year. In the first half of last year, Laopu Gold’s revenue reached 12.3 billion yuan, a 2.5-fold increase; its high-margin fixed-price products generated remarkable profits, with a net profit of 2.26 billion yuan in half a year.

Central Bank Continues to Net Buy Gold for 16 Months

Behind the price surge is the continuous rise of international gold prices, with spot gold reaching over $5,595 per ounce in January 2026. According to the World Gold Council, in February, global gold ETF net inflows reached $5.3 billion, marking the ninth consecutive month of inflows and the strongest start to the year ever. As gold prices keep rising, boosting valuations, the total global gold asset management (AUM) hit a record high of $701 billion, with holdings reaching 4,171 tons.

Latest data from the People’s Bank of China shows that as of the end of February 2026, China’s gold reserves stood at 74.22 million ounces, an increase of 30,000 ounces from the end of January, marking 16 consecutive months of net accumulation.

Recent geopolitical tensions in the Middle East, with ongoing disruptions to oil transportation, and major oil-producing countries like Iraq and Qatar announcing production cuts, have driven international oil prices higher. Meanwhile, gold and silver have experienced sharp fluctuations. As of March 10, spot gold prices remained around $5,200 per ounce.

Despite short-term corrections, international investment banks generally remain optimistic about long-term gold prices. Goldman Sachs forecasts a long-term target of $5,400 to $6,000 per ounce, viewing gold as having shifted from a traditional safe haven to a “sticky hedge” tool. UBS predicts the target price for international spot gold in the coming months to reach $6,200 per ounce. JPMorgan forecasts gold will reach $6,300 per ounce by the end of 2026, but if Middle East tensions ease, prices may retreat, and it advises reducing positions on rallies.

Billionaire investor and Bridgewater founder Ray Dalio also supports gold, stating that the current economic environment faces significant risks. Sovereign bond investors are shifting assets from fiat currencies to hard assets like gold. “Gold has now become the second-largest global currency, with central banks and sovereign wealth funds continuously increasing their holdings,” he said. He emphasized that gold’s core advantage is safety, being the least prone to devaluation or confiscation, a consensus that has formed.

Reviewing the history of monetary systems, Dalio said all currencies are either linked to gold or other limited-supply hard assets, or are fiat currencies without supply limits. Historical experience shows that when currencies tied to hard assets carry excessive debt, they either default and lead to deflationary depression or print too much money, causing inflation and rising gold prices. The risks in today’s fiat currency system echo these lessons. Central banks’ large-scale money and credit issuance often lead to inflation, and gold, as a substitute for paper debt, consistently performs well, maintaining long-term value. This is a key reason why gold has become the second-largest reserve asset held by central banks worldwide.

In asset allocation, Dalio views gold as part of a strategic portfolio component rather than a short-term speculative asset. He recommends investors determine a strategic allocation of 5% to 15% for gold, depending on other assets and risk preferences, with tactical adjustments being secondary. He emphasizes that gold should be considered part of foundational money, and most investors currently do not have enough exposure to gold assets.

(Edited by: Wen Jing)

Keywords: Gold Price