Rational consumption rises as gold prices stay high: Guangzhou Gold Shopping Street experiences a surge, with affordable craftsmanship becoming the new choice

As the Spring Festival approaches, Guangzhou Dade Road’s “Golden Street” is bustling with activity, with goldsmithing and gold recycling businesses reaching their peak. On this short one-kilometer street, numerous gold processing and recycling shops are densely packed, making it a busy focal point just before the holiday.

At Guangzhou Gold and Silver Jewelry Co., Ltd.'s First Fortune Dade Road flagship store, around 11 a.m. on a weekday, the shop is already bustling. Ten goldsmiths are focused on their work—hammering, polishing, grinding, cooling, and welding gold—each step meticulous, with occasional exchanges with customers about craft details. “Too busy to eat lunch,” one goldsmith lamented. Goldsmithing requires continuous focus and constant communication with customers. Traditionally, during the lead-up to the Spring Festival, manual goldsmithing fees increase by 20% to 30% compared to normal days, but even so, many shops are overwhelmed with orders.

High gold prices have made consumers more cautious when purchasing gold. Especially after high-premium brands like Old Gold Shop gained popularity, ordinary consumers have become increasingly sensitive to brand premiums. Many choose to dig out old gold jewelry from their homes, re-melt and redesign it, paying only a small processing fee to make their old jewelry look brand new. This not only satisfies the ritual of wearing gold during the New Year but also alleviates the pressure of high gold prices. This rational consumption approach has quietly fueled a boom in Spring Festival goldsmithing.

According to industry sources, most customers at this goldsmith shop opt for pure gold processing. They bring in old gold, which is then melted down and crafted into rings, pendants, earrings, bracelets, and other styles. Depending on the style and gold weight, basic processing fees range from 110 to 600 yuan per gram. For example, processing 100 grams of pure gold into an ancient-style bracelet typically costs no more than 1,000 yuan. Compared to traditional jewelry stores like Chow Tai Fook and Lao Feng Xiang, which operate on buy-back and exchange models, goldsmithing has become a highly cost-effective choice.

Master Zhou, with nearly 40 years of experience, said that with the sharp rise in gold prices, goldsmithing business has also surged. During this Spring Festival, customer flow increased by 20% compared to usual days. Many customers come with luggage, intending to return home immediately after goldsmithing, and some are Chinese expatriates returning from the U.S. and the UK specifically to have their gold processed. Due to fluctuations in gold prices, consumers are increasingly aware that many branded gold jewelry are expensive not because of gold itself, but due to brand premiums, mall costs, and marketing expenses. Therefore, keeping gold and simply changing styles has become the most economical choice.

Xiao Xiao is one of many customers having their gold processed. She took leave specifically to come for goldsmithing. “Wearing gold before the New Year is good luck, symbolizing prosperity in the coming year,” she told reporters. She calculated that for over 50 grams of pure gold, the processing fee was only 780 yuan. If she chose to exchange gold at a traditional jewelry brand, with a market difference of 220 yuan per gram, plus the labor cost based on the jewelry’s weight, the total would easily exceed ten thousand yuan. “For just over 700 yuan, I can get a bracelet worth 70,000 yuan—such a deal,” Xiao Xiao said.

To prevent excessive crowding, the store where Master Zhou works has implemented an online reservation system. Customers book a time slot and then queue up at the store. Each day, about 20 to 30 goldsmithing appointments are available. Normally, only six or seven craftsmen are on duty, but during the lead-up to the Spring Festival, the number increases to ten to meet demand. Despite this, each goldsmith still handles 3 to 6 orders per day, and demand for goldsmithing services remains high. As early as February 9, all available goldsmithing slots at this store were fully booked before the Lunar New Year. Some customers booked a month in advance, while others arrived early in the morning to secure the first spot of the day. Customers who didn’t make reservations arrived at 7 a.m., hoping to get a chance on the spot.

On February 10, the reporter visited several goldsmith shops on Dade Road and found business unusually busy. The counters were stacked with thick piles of goldsmithing orders, and staff said, “The store has been busy from morning till night.”

In addition to goldsmithing, the gold recycling market is also very active before the holiday. First Fortune’s gold recycling shop secured a large order worth 600,000 yuan before the Spring Festival. The store’s daily customer flow remains steady at 20 to 30 people. Staff said, “Gold prices have been rising for some time, and many people are waiting for the right moment to sell.” As the year-end approaches, social exchanges, family expenses, and capital turnover needs increase, making gold the most flexible family reserve fund. An employee revealed that recently, they completed a recycling order of over 600 grams worth more than 700,000 yuan, and they also received a nearly 2,000-gram order valued at over 2 million yuan.

Xixi, a customer, was consulting about selling her old gold jewelry at a recycling shop. She said her jewelry was a gift from relatives when she got married ten years ago, totaling about 46 grams across 10 pieces. She sold it all at 1,069 yuan per gram, realizing about 49,000 yuan in one go. “Selling it now allows me to give my elders a token of filial piety,” she said.

The booming gold processing and recycling businesses have attracted more entrants. Pan Hong invested about 2 million yuan in October 2025 to open a jewelry shop on Dade Road specializing in goldsmithing and gold recycling, aiming to seize market share and benefit from the Spring Festival rush. In stark contrast, traditional gold retail remains relatively quiet. Some gold brand distributors revealed that this year’s Spring Festival business is even slower than previous years, and some factories in Shenzhen’s Shuibei have already taken an early week-long holiday. Essentially, the pre-holiday surge in goldsmithing and recycling reflects how ordinary people, in an era of high gold prices, have found the most suitable consumption methods and sense of security for themselves.