Jewelry stores spark a price hike wave; fixed-price products become the "most popular"

21st Century Business Herald Reporter Ye Maishui

Geopolitical tensions in the Middle East have further intensified gold market volatility.

The 21st Century Business Herald has observed that since the beginning of the year, the domestic gold jewelry market has experienced successive price hikes. First led by Chow Sang Sang, then Chao Hongji, Baolan, Linchao, Junpei, and Laopu Gold brands have all joined the price increase wave, with generally over 10% rises. Interestingly, when gold prices hit historic peaks, the significant price hikes by brands did not deter consumers—instead, they sparked synchronized online and offline rushes to buy.

Fixed-Price Products Lead the Price Hike Trend

Gold jewelry has become this year’s “most dazzling star.” From offline stores in high-end malls in Beijing, Shanghai, Guangzhou, Shenzhen, and Hangzhou to major online flagship stores of brands, scenes of queuing, instant sell-outs, and price markups are repeatedly staged. Even with gold ornaments suddenly increasing in price by tens of thousands of yuan overnight, consumers continue to flock.

On March 9, Junpei Jewelry adjusted the prices of all its products. A 50-gram bamboo bangle, priced at 97,530 yuan on March 8, was directly listed at 143,080 yuan on March 9—an overnight jump of nearly 50,000 yuan, over 46% increase.

Smaller weight gold ornaments see more obvious per-gram price increases. For example, a bamboo chain around 8 grams was priced at 15,100 yuan on March 8, and after adjustment on March 9, it was 23,780 yuan—up 57.5%, with a per-gram price approaching 3,000 yuan. A Pixiu bracelet weighing about 9 grams rose from 22,125 yuan to 29,450 yuan, about 3,272 yuan per gram; peony flower earrings weighing 4.6 grams increased from 8,850 yuan to 13,390 yuan.

Junpei is just one example among the wave of gold and silver jewelry price hikes. Early in 2026, many gold brands have adjusted their prices, with fixed-price products being a key focus of this round of increases. Chow Sang Sang led the price hikes in January, with increases of about 5% to 15%; Chao Hongji followed closely, with overall increases of 10% to 20%. Meanwhile, traditional gold brands Linchao Jewelry and Baolan also completed price adjustments at the end of January and early February, respectively.

On February 28, Laopu Gold launched its first round of price increases for the year, with hikes of 20% to 30%. Before the official price hike, many products on its Tmall flagship store were snapped up quickly. On February 26, combined with the “spend 1,000 yuan, get 100 yuan off” promotion, sales in just one second exceeded 300 million yuan, with total daily sales surpassing 1 billion yuan. Collectible items such as a gold bowl priced at 625,000 yuan, a gold gourd at 560,900 yuan, a gold toad at 300,000 yuan, and a gold Ruyi at 469,100 yuan were sold out within 10 minutes.

As the “Hermès” of gold jewelry, Laopu Gold is one of the biggest beneficiaries of this gold price rally. With gold prices continuously hitting new highs, market demand for gold jewelry has significantly increased. Gold jewelry has become not only an ornament but also a store of value and investment. Before each price hike, Laopu Gold’s storefronts are always crowded with customers.

It is reported that about 50 Laopu Gold stores nationwide are located in high-end shopping districts such as Beijing SKP, Shanghai Henglong, Shenzhen MixC, and Guangzhou Taikoo Hui, without expansion into lower-tier markets. Due to the accelerated opening of new stores, this number is expected to grow further this year. In the first half of last year, Laopu Gold’s revenue reached 12.3 billion yuan, a 2.5-fold increase; its high-margin fixed-price products generated remarkable profits, with a net profit of 2.26 billion yuan in half a year.

People’s Bank of China Continues to Net Buy Gold for 16 Months

Behind the price surge is the continuous rise of international gold prices, with spot gold reaching over $5,595 per ounce in January 2026. According to the World Gold Council, in February, global gold ETF net inflows reached $5.3 billion, marking the ninth consecutive month of net inflows and the strongest start to the year on record. As gold prices keep rising, boosting valuations, the total global gold asset management (AUM) has climbed to a record high of $701 billion, with holdings reaching 4,171 tons.

Latest data from the People’s Bank of China shows that as of the end of February 2026, China’s gold reserves stood at 74.22 million ounces, an increase of 30,000 ounces from the end of January, marking 16 consecutive months of net accumulation.

Recent geopolitical tensions in the Middle East, with ongoing disruptions to oil transportation and major oil-producing countries like Iraq and Qatar announcing production cuts, have driven international oil prices higher. Meanwhile, gold and silver have experienced sharp fluctuations. As of March 10, spot gold prices remained around $5,200 per ounce.

Despite short-term corrections, international investment banks generally remain optimistic about long-term gold prices. Goldman Sachs forecasts a long-term target of $5,400 to $6,000 per ounce, viewing gold as having shifted from a traditional safe-haven asset to a “sticky hedge” tool. UBS predicts the target price for international spot gold in the coming months to reach $6,200 per ounce. JPMorgan Chase forecasts gold will reach $6,300 per ounce by the end of 2026, but if Middle East tensions ease, prices may retreat, and it recommends reducing positions on rallies.

Billionaire investor and Bridgewater founder Ray Dalio also endorses gold, stating that the current economic environment faces significant risks. He notes that sovereign bond investors are shifting assets from fiat currencies to hard assets like gold. “Gold has become the second-largest global currency, with central banks and sovereign wealth funds continuously increasing their holdings,” he said. He emphasizes that gold’s core advantage is safety—being the least susceptible to devaluation or confiscation—and this attribute has become widely recognized.

Reviewing the history of monetary systems, Dalio states that all currencies are either linked to limited supply hard assets like gold or are fiat currencies without supply limits. Historical experience shows that when currencies tied to hard assets carry excessive debt, they either default and cause deflationary depression or issue too much currency, fueling inflation and rising gold prices. The current fiat currency system’s risks echo historical lessons: large-scale monetary and credit expansion by central banks often leads to inflation. Gold, as a substitute for paper debt, consistently performs well in preserving value over the long term, which is why it has become the second-largest reserve asset held by central banks worldwide.

In asset allocation, Dalio views gold as part of a strategic portfolio component rather than a short-term speculative asset. He recommends investors determine a strategic allocation of 5% to 15% of their portfolio to gold, depending on other assets and risk appetite, with tactical adjustments being secondary. He stresses that gold should be regarded as part of a base currency, and most investors currently do not hold enough gold assets in their portfolios.