With gold prices smashing record highs, a renewed gold rush is sweeping through major cities in China and Hong Kong, as buyers and sellers alike remain convinced the precious metal’s surge is far from over.
Jewelry shops and bullion dealers in Shanghai have been packed with customers eager to buy, even as prices soar to unprecedented levels. Longtime gold traders say the enthusiasm reflects a deep-rooted belief that gold remains a reliable store of value, especially in uncertain times. Many point to decades of steady appreciation as proof that the upward trend still has room to run.
Gold recently surged past $5,100 an ounce after a dramatic rise last year, driven by aggressive central bank buying and heightened demand from investors seeking safety amid global economic and political volatility. The rally has been fuelled in part by efforts to reduce dependence on the U.S. dollar and growing concern over global instability.
Some market analysts now believe prices could climb even higher before year-end, with forecasts suggesting gold could reach new milestones if current momentum holds.
In Shanghai, retirees and everyday investors are joining the rush, saying the rapid rise has not deterred them from buying. Many say they still find the current prices acceptable and fear missing out on further gains if they wait too long.
The frenzy has extended to Hong Kong, where precious metals dealers report their busiest start to a year in decades. Demand has been so strong that supplies of small gold bars have tightened, as refineries worldwide struggle to keep up with retail demand. Delays in production have only added to the sense of urgency among buyers.
At the same time, record prices are prompting others to cash in. In Hong Kong’s financial district, long queues have formed outside gold shops as people arrive carrying old jewelry, ornaments, and small bars to sell. For some, the high prices offer a rare chance to unlock value from items they’ve held for decades.
While enthusiasm remains strong, soaring prices are beginning to reshape demand patterns. Overall wholesale demand for gold in China declined last year as higher prices and tax changes weighed on jewelry purchases, even as interest in investment-grade bars and coins continued to grow. China’s central bank, however, has remained a steady buyer, adding to its gold reserves month after month.
Veterans of the gold trade say the current boom is unlike anything they’ve seen in decades. Many believe ongoing geopolitical tension, economic uncertainty, and volatile global leadership will continue to push investors toward gold as a safe haven.
For now, whether buying to hold or selling to take profits, one thing appears clear across China’s gold markets: confidence in the precious metal remains unshaken, and few believe the rally is nearing its end.