What will be the impact of soaring gold prices? Why are many gold stores busy closing?

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In the first half of 2024, the price of gold once seemed to ride a roller coaster. The gold price has risen from more than 480 yuan/g at the beginning of 2024 to more than 570 yuan/g in the middle of April. The gold price has risen by more than 90 yuan. At the beginning of 2022, the gold price was only 380 yuan, and the gold price has increased by more than 25% annually over the past two years. The soaring price of gold has both good and bad sides.

Gold prices rise, but many gold stores are busy closing

In the current market, there are more gold stores than rice stores, which is not too much. In the shopping malls, there are many gold stores of various brands, and the prosperous areas around the business circle basically have the shadow of gold stores. Even a commercial street in some counties has several to ten gold stores. The price of gold is very transparent, and the profit is meager. In addition to the fierce competition, many gold stores have little profit except for houses and expenses. After the gold price went up, some gold stores that usually did not operate very well had relatively low purchase prices at that time, and the profits of normal gold stores were not as fast as gold appreciation. Now the gold price has reached the highest point, so it is better to close the doors, sell the existing gold products for cash, and make a big profit. Because the gold industry is very busy now, it is better to take advantage of the high price of gold to realize quickly than to support hard.