Group 1 - The core viewpoint of the article highlights a significant restructuring in global gold demand, characterized by a decline in traditional consumption and a surge in investment and functional demand, reshaping the market ecology [1][2] - The World Gold Council reports a 28% year-on-year drop in domestic gold jewelry consumption in the first half of 2025, marking the lowest level since 2009, indicating a shift in consumer behavior [1] - The article emphasizes the urgent need for traditional gold retailers to transform by increasing the proportion of lightweight and design-oriented products, reducing premiums, and connecting with source supply chains [1] Group 2 - The recent sharp decline in gold prices is attributed to multiple factors, including a significant easing of geopolitical risks and a reassessment of U.S. monetary policy expectations, which fundamentally altered the core logic supporting gold's price increase [3] - The article notes that the internal structural weaknesses of the market amplified the negative impacts of these fundamental changes, leading to panic selling among bullish investors and triggering a typical "long squeeze" scenario [3] - Despite the recent volatility, the long-term fundamental factors supporting gold prices remain intact, with ongoing geopolitical changes enhancing gold's safe-haven appeal and a loose monetary policy environment bolstering its value retention [4]

Core Viewpoint - The global gold market is experiencing a paradox of soaring prices alongside declining consumption, driven by a significant restructuring of demand dynamics, where traditional consumption is waning while investment and functional demand are surging [1] Traditional Consumption Demand - Traditional gold consumption, primarily for jewelry and weddings, is undergoing a notable decline, characterized by three main trends [2] - Wedding demand is shifting from "must buy" to "can rent," with the percentage of newlyweds purchasing full sets of gold jewelry dropping from 68% in 2023 to 32% in 2025, while the rental option has increased from 5% to 28% [2] - The cost of traditional gold jewelry has surged over 64% year-on-year, leading to a rise in sales of alternative materials like silver and alloy, which increased by 45% [2] Gift Demand - The demand for gold as a gift is significantly shrinking, with the proportion of gold gift consumption dropping from 18% in 2023 to 9% in 2025, marking the largest decline among all consumption categories [3] - High gold prices have made gifting gold less appealing, as the amount of gold that can be purchased for the same budget has halved, prompting consumers to opt for practical gifts like electronics instead [3] Investment Demand - In stark contrast to declining consumption, investment demand for gold is experiencing a robust surge, with various investor profiles entering the market [4] - Ordinary investors are increasingly turning to "accumulated gold" and "gold ETFs," with over 12 million personal accounts opened for accumulated gold, and monthly trading volumes exceeding 300 tons [5] - High-net-worth individuals prefer physical gold bars, with consumption reaching 293 tons in the first half of 2025, a 26% increase year-on-year [6] - Institutional investors, including central banks, are strategically increasing their gold holdings, with China's central bank having added gold for 11 consecutive months, reaching 7.406 million ounces by the end of September [7] Market Transformation Logic and Outlook - The transformation in gold demand reflects a dual drive of pragmatic consumption and risk aversion in the current economic environment [8] - Traditional gold retailers must adapt by increasing the proportion of lightweight and design-oriented products while reducing premiums [8] - The market is evolving from a singular focus on jewelry or investment to a composite asset that encompasses consumption, investment, and liquidity, indicating a long-term shift in market dynamics [8]