The gold trade in Macau remains unusually stable, despite record prices in international markets for this classic safe haven asset during times of financial turbulence.
“Historically, a dramatic change in the price of gold triggers a clear reaction — many people either buy or sell,” said Lei Cheok Kuan, Vice-President of the Macau Goldsmiths’ Association.
“Typically, high prices encourage selling, and low prices stimulate buying. But now we are seeing virtually no change in either direction,” she added.
Gold prices fell on Friday, with an ounce trading at $4,108.59, below the all-time high of $4,347.86 recorded on October 20.
Lei, who also owns a jewelry store in the heart of Macau near the iconic Ruins of St. Paul, explained that demand remains untouched due to local cultural traditions. People continue to purchase gold “out of necessity” for weddings where the metal plays a pivotal role in Chinese matrimonial traditions.
In the display of Lei’s shop, large gold bracelets intricately decorated with dragons and phoenixes bear witness to this almost ritualistic practice. A pair of these bangles is considered essential among a bride’s adornments, alongside earrings, a matching ring, and a gold necklace.
“Business is always good during the Chinese New Year and the Mid-Autumn Festival because people buy gold for luck and for weddings,” Lei emphasized.
“When people buy out of necessity, business is good. No matter how high the price is, they have to buy,” she further explained, elaborating on the “deep cultural meaning” associated with gold gifts.
“When a daughter marries or a son takes a wife, it is essential for family and friends to witness the occasion. Not seeing a single piece of gold jewelry would be considered shameful; the Chinese view this as a matter of honor,” she stated.
Behind appearances, however, something is changing in this tradition-bound activity. Although the number of items purchased may be high, Lei noted, the actual gold weight in jewelry is decreasing, a trend accelerated by design and artificial intelligence (AI) assisted manufacturing.
The entrepreneur pointed to a pair of bracelets in the window: “This one is made using traditional craftsmanship — over 110 grams each. Now look at the one above. That is machine-made, only 30 grams. Which would you choose to buy?” she asked, highlighting how modern techniques create larger-looking pieces with less gold.
“Thus, the current situation has arisen where the number of items is large, but the total weight bought is becoming less and less,” she concluded.
This change was confirmed by veteran matchmaker and wedding planner Lei Chau Tong, with over 30 years of advisory experience, who has observed a clear decline in the amount of gold purchased for traditional weddings.
“Now, most brides wear only two pairs of dragon-and-phoenix bracelets and a necklace. This is less than half the amount we used to see when gold prices were lower,” she said.
One pair of those bracelets can cost about 40,000 patacas (€4,322), she noted.
“This year, with gold prices so high, the purchasing power is inevitably lower. But for the parents of a couple, gold jewelry is still a ‘key piece,'” she also emphasized.
The change is visible, Lei Chau Tong reinforced, right from the significant reduction in the number of gold jewelry pieces given by relatives, to the types of gifts they offer.
“In the past, the bride’s relatives would present thick and heavy dragon-and-phoenix bracelets. Now, with the soaring gold price, gifts are often just a thin bracelet or a pair of rings. Some simply give money,” she stated.
Gone is the opulence of other times: “Once I attended a bride who brought a 28-inch suitcase just to store her gold jewelry. Only the ‘dragon-and-phoenix bracelets’ totaled almost sixty pairs — two around her neck, one around her waist, and a succession covering her arms all the way up. There were also several necklaces, more than she could ever wear,” she recounted, adding that this was the wealthiest family she had served.
On the other side of the market, among buyers, a representative from “Gold Smart,” a company operating seven self-service ATM gold recycling machines across the Macau peninsula, reported a business increase of about 20% over two months.
These machines, some located near casinos, provide real-time pricing and instant cash in exchange for gold pieces, and “typically serve about 500 people per month,” said the representative, who wished to remain anonymous.
While modern jewelry has found ways to maintain business volume by keeping traditional buyers close, the reality is that the moment is also marked by the emergence of a new wave of sellers, unable to resist the historically high prices.
