Chinese wedding traditions are just one of the many factors that influence global gold prices
If you have any gold jewelry, coins, watches, trinkets, or even gold scraps that you’re willing to part with for a few months or a year, you could easily convert them into cash with a visit to Gems & Jewelry Inc.. We accept all kinds of fine gold items as collateral for loans, and you can get cash on the very same day you visit. How much cash will you get? That all depends on the amount of gold you bring, the global gold price at the moment, and our confidence in gold price trends.
While at its most basic, gold price is set by supply and demand, many factors influence the demand for gold. Some factors such as national currency and banking policies are quite dry, while others, such as China’s growing appetite for gold as wedding gifts, are much more interesting.
According to a report from the World Gold Council, Chinese families purchased 669 tons of gold jewelry last year—a six-fold increase since 2004. In large part, this was due to an increase in the earning power of the middle class. Average Chinese citizens now happily spend $100 to $200 a pop for small gold gifts such as pendants, earrings, and bracelets on occasions like Mother’s Day, Valentine’s Day, and, of course, weddings.
Giving gold to a couple on or before their wedding day is a strong tradition in China, especially in third- or fourth-tier cities and in rural areas, where traditions are more likely to be kept than in more modern global cities. The parents of the bride and the groom are both expected to give gold to represent the passing of blessing from one generation to another. Typically, this gold gift takes the form of a three-piece set called “jiehun san jin,” which translates literally to “marriage, three gold.” The necklace, pendant, and bracelet in this set are always made of yellow gold because yellow symbolizes abundance and indestructability in the marriage blessing.
With the number of marriages in China growing at the same time as buying power is increasing, experts expect Chinese wedding gifts to remain a strong factor in global gold demand. In fact, according to the World Gold Council’s head Asia expert, Chinese appetite for gold jewelry could grow 17 percent to 780 tons by 2017, fueling total Chinese private sector gold demand to 1,350 tons or roughly one third of total global demand.
So next time you head out to secure a collateral loan based on your gold jewelry or other gold items, here’s hoping Chinese marriage traditions will help get you a great price!
