How Spring Festival shapes the world's second-largest jewellery market.
Contents4 sections
For millions of households across China, Hong Kong, and the Chinese diaspora, the lunar new year is the single largest gold-buying occasion of the calendar. The result: a January-February demand spike visible all the way to London spot.
The forms of gift
Three formats dominate. First, the gold pendant (often 24K, 999.9 fineness) shaped as the year's zodiac animal and given to children. Second, the gold bar or coin given between adults, typically in modest weights of 5-50 grams. Third, traditional 24K bangles for engagements during the festive period.
- Chinese gold demand peak month: typically January
- Annual jewellery demand China: ~600-700 tonnes
- Preferred purity: 24K (999.9)
- Top retailer: Chow Tai Fook, with over 7,000 outlets
- Zodiac animal pieces produced annually: tens of millions
Why 24K rules in China
The Chinese consumer treats jewellery primarily as a store of value with decorative benefits, not vice versa. 24K hard gold (a relatively new alloy technique that gives 999 metal more wearability) has been a particular growth area, allowing pure gold to hold finer designs.
"Red envelopes carry luck. Gold pendants carry wealth. We give both because both matter." Hong Kong jeweller, lunar new year 2024
Hong Kong as the showroom
Hong Kong's jewellery district, particularly around Causeway Bay and Tsim Sha Tsui, becomes the regional barometer. Premiums on the Shanghai Gold Exchange (SGE) typically widen against London spot in the weeks ahead of the festival, sometimes by $20-30/oz.
The post-festival hangover
Demand drops sharply in March. Sophisticated traders short the SGE-London premium going into late February. The same pattern has repeated for nearly two decades.
Bottom line: Spring Festival is to Chinese gold what Diwali is to Indian gold. Mark the lunar calendar if you trade the metal.
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