Why is gold in Chinese jewelry so cheap?

The reasons why gold in Chinese jewelry is cheap are as follows: The design style is more traditional: Compared with the popular international fashion trends, the design style of Chinese gold jewelry is conservative and traditional, without major innovations and breakthroughs.

This has led to a low level of competition in the Chinese jewelry market, and prices are naturally relatively low.

Moreover, as the demand in the jewelry market shows a trend of decentralization, jewelers have higher production requirements for various types of gold jewelry. Therefore, China has limited resources to mine gold and produce gold jewelry, which also limits the creativity of gold jewelry products.

The design and quality have improved, thus affecting the room for improvement in gold jewelry prices.

Low production costs: The production costs of Chinese gold jewelry are relatively low, which has contributed to the decline in gold prices to a certain extent.

First of all, Chinese jewelry companies have low labor costs and have certain advantages in hiring labor.

Secondly, China has many inherited traditional technologies and processes, which not only reduces the R&D costs of enterprises, but also improves production efficiency.

In addition, the supply of raw materials for gold jewelry is relatively abundant in China, which also reduces costs.

Low gold content: The gold content of Chinese gold is relatively low, generally between 37.5% and 99.9%, and the average content is about 90%.

Compared with the international standard of 99.99%, it is obviously lower.

This is an important reason for the low gold price in China.

In addition, China imports relatively few gold nuggets and bars, which also limits jewelry companies’ purchasing channels and ability to adjust market prices.