China is set to capture a greater share of the global gold market following decades of development and specialisation which have given rise to a mature and highly integrated industry chain.
This is according to Mr Wang Lixin, Chief Executive Officer of the World Gold Council in China, who noted that mainland enterprises already have the craftsmanship and connections to step up their presence on the global arena with confidence. The World Gold Council is an international organisation comprising leading gold mining companies, which provides gold market data and research, and sets standards including ESG practices across the gold supply chain.
With over 30 years of industry experience, Mr Wang has witnessed many of the major transformations in the mainland’s gold market, such as the founding of the Shanghai Gold Exchange and the introduction of gold bars. From his perspective, Mr Wang observed that while the mainland’s gold industry has progressively specialised across research and development, design, production and manufacturing, nevertheless the volatility of the gold market requires mainland industry players to continually innovate and adapt.
Evolving technologies to reshape the market
A World Gold Council report on global gold demand trends indicates that last year's total global gold demand surged to HK$4.3 trillion (US$550 billion), representing a 45% year-on-year increase. Looking ahead, with gold prices expected to remain elevated for the foreseeable future, demand for gold jewellery is likely to stay under pressure.
This is where new technology can play a role in addressing elevated costs while maintaining a competitive edge, explained Mr Wang, pointing to the introduction of ‘hard gold’ jewellery as a case in point. Hard gold refers to electroplated gold that has been alloyed with small amounts of other metals to make it harder and more resistant to abrasion than pure gold.
“Hard gold preserves the colour and value of 24K gold, while employing electroforming and lost-wax casting techniques to increase its hardness to levels approaching 18K/22K gold. The result is jewellery that is harder, lighter and more lustrous and can be easily shaped into minimalist, geometric and innovative designs, overcoming the softness, mutability and moulding limitations of traditional gold,” said Mr Wang.
He believes hard gold jewellery more closely aligns with modern consumer tastes and everyday styling needs, injecting new momentum into the global gold jewellery market.
A global stage for China’s gold industry
Organised by the Hong Kong Trade Development Council (HKTDC), the Hong Kong International Jewellery Show takes place from 4 to 8 March at the Hong Kong Convention and Exhibition Centre, showcasing a wide array of finished jewellery pieces, while the Hong Kong International Diamond, Gem and Pearl Show is held at AsiaWorld-Expo from 2 to 6 March. As the world's largest one-stop jewellery trade platform, the twin fairs present a comprehensive range of products from raw materials such as rough diamonds, loose stones and pearls, to finished jewellery, designer brands, setting components, product packaging, identification instruments and advanced jewellery technologies.
The World Gold Council makes its debut as an exhibitor at the Jewellery Show this year. Featuring ten leading mainland gold manufacturers, the Hard Pure Gold pavilion showcases innovative gold technologies and leverages the fair as a platform to explore global business opportunities.
During the week-long event, the HKTDC will host over 20 seminars and networking events, including workshops by the World Gold Council analysing the latest gold market trends and introducing hard gold technology.