3 6 Ke·2024-04-18 07:22Core Viewpoint - The recent surge in gold prices has shifted public sentiment from excitement to concern, prompting discussions about the implications of such price movements and consumer behavior in the gold market [1]. Group 1: Market Trends - Gold prices have seen significant increases, with prices reaching 728 RMB per gram for 24K gold on April 8, and over 700 RMB per gram for other brands shortly after [1]. - Despite the rising prices, the retail gold market in lower-tier cities has remained relatively quiet, with many consumers hesitant to make purchases due to fears of further price increases [2][4]. - The consensus in the jewelry industry suggests that as gold prices rise, consumer interest and sales tend to decline, indicating a paradox where higher prices lead to lower sales volume [4][12]. Group 2: Consumer Behavior - In lower-tier cities, consumers are increasingly cautious, with many opting to observe rather than purchase, reflecting a broader trend of conservative spending among the general public [4][6]. - The demand for gold among younger consumers, particularly for wedding-related purchases, has been impacted by rising prices, leading to frustrations and delays in buying decisions [7][9]. - Many consumers are turning to old gold jewelry for trade-ins or exchanges to mitigate the impact of high prices, with some stores offering discounts on processing fees for such transactions [9][11]. Group 3: Brand Dynamics - The competition among brands has intensified, with traditional brands like Chow Tai Fook and Lao Feng Xiang adapting their product lines to attract younger consumers, yet facing challenges in lower-tier markets where price sensitivity is higher [12][14]. - The shift in consumer preferences towards lower-priced, high-purity gold products has led to a decline in sales for branded items that carry higher premiums [12][16]. - The market dynamics indicate that in the current environment, the purity and weight of gold are more critical to consumers than brand recognition, especially in lower-tier markets [12][16].