BEIJING — China’s jewellery industry is facing a growing shake-up as consumers turn away from expensive gold ornaments and increasingly put their money into gold bars and coins instead.
The shift is hitting jewellery retailers hard, with thousands of stores closing across China even as demand for gold itself remains strong.
The reason is simple: as gold prices remain high and volatile, more Chinese consumers are choosing products that offer greater investment value rather than paying additional design and processing costs for jewellery.
Gold Is Still Popular — But Jewellery Is Losing Out
China’s appetite for gold has not disappeared. Instead, consumers are changing what they buy.
World Gold Council data showed that mainland China’s gold jewellery demand fell 28% year on year in the second quarter of 2026, reaching its lowest second-quarter level since 2004.
For the first half of the year, Chinese gold jewellery demand was down 30%, as high prices, volatile markets and fragile consumer confidence discouraged buyers.
At the same time, investment-focused gold products have become increasingly attractive.
Gold bars and coins generally carry lower premiums than jewellery, making them a more direct way for consumers to gain exposure to the precious metal.
Thousands of Jewellery Stores Have Closed
The changing consumer trend is now reshaping China’s jewellery retail industry.
Reports from Chinese financial media indicate that major jewellery brands collectively closed thousands of outlets in recent years, with some of the country’s biggest chains recording significant net store closures in the first half of 2026 alone.
The closures highlight an unusual contradiction in China’s gold market:
Gold prices are high, but gold jewellery stores are struggling.
For retailers, rising gold prices increase the amount of capital needed to maintain inventory while also making finished jewellery less affordable for consumers.
Consumers Want Value, Not Just Decoration
The shift reflects changing priorities among Chinese buyers.
For many consumers, buying gold has increasingly become a form of wealth preservation rather than simply a fashion purchase.
Jewellery includes additional costs for craftsmanship, branding and design. Gold bars and coins, meanwhile, are often seen as a more efficient investment because buyers are paying closer to the underlying value of the metal.
The World Gold Council said the growing appeal of lower-premium investment products has become a significant headwind for jewellery demand, particularly as elevated prices encourage consumers to focus more closely on value.
High Prices Are Changing How People Buy Gold
Even consumers who continue buying jewellery are changing their habits.
Many are choosing lighter pieces, exchanging old jewellery for new products or looking for designs that use less gold.
This has created a sharp divide between the volume of gold jewellery being purchased and the total amount consumers are spending.
China’s jewellery demand has weakened significantly in physical weight, but spending has remained more resilient because gold prices are so high.
That means jewellery companies are being forced to rethink their business models.
The Industry Faces a Major Reset
The old strategy of opening more and more stores is becoming increasingly difficult to sustain.
China’s jewellery industry is now entering a period of consolidation, with weaker outlets closing and major brands reassessing their retail networks.
Some companies are trying to attract consumers through lighter products, more distinctive designs and stronger branding.
Others are increasingly focusing on the emotional and cultural value of jewellery rather than competing purely on the amount of gold in each product.
But the challenge remains clear: when consumers can buy gold directly through bars and coins, jewellery retailers must convince them that design and craftsmanship are worth the extra cost.
The Bottom Line
Chinese consumers are still buying gold — they are just buying it differently.
High and volatile prices have pushed more investors towards gold bars and coins, while expensive jewellery has become harder to sell.
The result is a painful shake-up for China’s jewellery industry, with stores closing even as demand for the precious metal remains strong.
For Chinese consumers, gold is increasingly becoming an investment. For jewellery retailers, that shift could be a fight for survival.
WWC ONE MEDIA J.M.D
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