Newscasts - China's 'Hermes of gold' soars in high-end goods demand slump

Laopu Gold Co

20/03/2025 11:58

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Source: 'Reuters - Business videos'

Description: Chinese brand Laopu Gold is a notable outlier in the country's luxury goods market, overcoming consumer malaise and soaring in popularity as buyers bet on the value of gold. Fiona Jones reports.

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Video Transcript:

Jewelry collector Vivian Wang believes she’s spent over $138,000 on pieces from Chinese brand Laopu Gold. The jeweler is a major outlier in the country’s luxury goods market, and with consumers dubbing it the Hermes of Gold, investors are paying attention. The sector’s been hammered by hesitant consumers concerned over job and wage security, and the ailing property market. But, having blended Chinese cultural elements with contemporary design, Laopu Gold is something uniquely homegrown. Among Wang’s prized possessions is an almost $14,000 dragon medallion and an intricate box worth over $55,000.

I don’t know if this shift has something to do with the pandemic, but it seems that people are seeking a sense of emotional healing and spiritual connection. Traditional Chinese symbols, like dragons and phoenixes, carry auspicious meanings, making them more than just decorative. They offer a sense of comfort and protection.

She said that long term, gold is the best way to preserve value.

With global uncertainty, whether in the Western world, the US, Europe, or the ongoing Russia-Ukraine conflict, the overall state of the world feels unstable. In such an unpredictable environment, gold is undoubtedly one of the better choices for hedging risks.

Laopu’s success has been fortified by its use of gold, considered a safe investment by Chinese consumers during periods of instability. And it's now considered a luxury contender alongside Western brands like Tiffany and Cartier. Laopu Gold did not respond to interview requests from Reuters. But a source with direct knowledge said its annual sales approached $1.4 billion in 2024, up from $439 million in the previous year. Since its Hong Kong IPO in 2024, its share price has surged ten-fold.