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China’s Love Affair With Gold Heating Up on Property Riches

  • Showrooms in Shenzhen busy, wholesalers see clients returning
  • World’s biggest jeweler expects sales to keep expanding in ‘18
An employee arranges gold bracelets at a Chow Tai Fook store in Shanghai.
An employee arranges gold bracelets at a Chow Tai Fook store in Shanghai.Photographer: Qilai Shen/Bloomberg
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China’s growing throng of affluent consumers is driving a rebound in demand for gold rings, bracelets and necklaces as a property boom and high stock market valuations boost wealth in the largest bullion market.

“Things are much more positive than they were this time last year,” and the jewelry market has bottomed out after three years of declines, said Nikos Kavalis, London-based director of research firm Metals Focus Ltd. Colleagues who visited the southern commercial hub of Shenzhen in early January told him showrooms were quite busy and wholesalers expected clients to return to replenish their stocks before Lunar New Year in the middle of February.