Core Insights - The article discusses the disparity between international gold prices and domestic gold jewelry prices, highlighting that while international gold prices have dropped, domestic prices have increased due to various cost factors [1][3]. Group 1: Understanding Gold Pricing - International gold prices refer to the raw material cost of pure gold, influenced by factors such as the US dollar exchange rate, geopolitical events, and Federal Reserve policies [3]. - Domestic gold jewelry prices include not only the raw material cost but also additional costs such as processing fees, brand premiums, and store operating costs [4]. Group 2: Factors Behind Price Increases - The increase in domestic gold jewelry prices is attributed to rising non-material costs, including processing fees, brand premiums, store costs, and taxes [5]. - Processing fees for gold jewelry have risen by 20%, with costs now ranging from 50 to 150 yuan per gram due to more complex manufacturing techniques [5]. - Brand premiums can account for 10-15% of the retail price, with well-known brands charging significantly more for similar purity items [5]. Group 3: Currency and Supply-Demand Dynamics - Domestic gold prices are also affected by currency exchange rates and supply-demand relationships, which contribute to the disconnect from international prices [6]. - The recent appreciation of the US dollar has led to a situation where even if international prices drop, the domestic price in yuan may not reflect that decrease [6]. - Seasonal demand, particularly during wedding seasons and holidays, has led to increased prices as supply struggles to meet consumer demand [6]. Group 4: Consumer Guidance - Consumers are advised to differentiate between "urgent needs" and "investment" when purchasing gold, focusing on raw material prices and processing fees for urgent needs [7]. - For investment purposes, it is recommended to avoid gold jewelry due to high processing fees and instead consider gold bars or coins that are closer to raw material prices [7]. - Consumers should be cautious about market timing and avoid purchasing during peak demand periods to secure better prices [7].