Consumers shift to lightweight gold jewelry as prices stay high

With gold prices hovering at historically high levels, a gold industry association is prompting the sector to adapt by developing more lightweight jewelry to meet growing demand for cost-effective options.

The Macau Goldsmith Guild expects gold prices to continue rising, even following gold’s record high in Macau, which surpassed MOP30,000 per tael in October last year – driven by global bullion trends and geopolitical factors.

According to association chairman Lei Koi Ian, although gold prices have eased slightly from last month’s peak, they remain high.

Ongoing geopolitical uncertainties, including trade policy fluctuations, continue to drive risk-averse sentiment, reinforcing gold’s appeal as a safe-haven asset. Lei said the industry remains cautiously optimistic about the market’s outlook.

Meanwhile, despite stable customer foot traffic in the first half of 2025, average spending per customer has declined.

Lei noted that high gold prices and a general trend toward conservative spending have led to smaller individual purchases, resulting in overall business performance falling short of last year’s figures.

To address this, the industry is advancing a “light gold” strategy – designing and promoting lighter, more affordable jewelry that retains visual appeal while reducing material costs, and adding that these pieces are intended to offer consumers better value for money, aligning with current purchasing trends.

Previously, local jewelry shop owners told the Times there is cautious sentiment among consumers in Macau’s gold industry, where prices have surged by 42% in 2024.

Jewelers have expressed hope for government intervention to support consumers during this volatile period, suggesting that financial assistance could alleviate some of the pressures faced by both buyers and sellers in the gold market.