CHOW TAI FOOK(HK:01929) Xin Lang Cai Jing·2025-12-02 12:14Core Insights - The international gold price has surged to $4,200, while domestic gold jewelry prices have increased by 43 yuan in just one week, with brands like Chow Sang Sang reporting a price of 1,336 yuan per gram, marking six consecutive price hikes [1] - Despite rising gold prices, major jewelry retailers like Chow Tai Fook have closed 606 stores in six months, averaging three closures per day, indicating a paradox where higher gold prices are driving away ordinary consumers [1] - The underground gold trading market is experiencing extreme leverage, with a 94-fold leverage allowing individuals to trade 1 kilogram of gold with just 10,000 yuan, leading to significant financial losses for inexperienced investors [1] Industry Trends - The closure of stores in the gold retail sector is attributed to the excessive expansion of the industry, highlighting a trend of unsustainable growth [1] - Consumer behavior is shifting, with ordinary individuals engaging in gold trading driven by greed and fear, often leading to regret and financial distress when prices fluctuate [1] - The current market sentiment suggests that when even casual consumers begin discussing gold investments, it may signal the peak of the market cycle [1]