International Gold Price Falls Nearly 5% Within the Month, Investors Who Bought Physical Gold at Higher Prices Are Trapped

Recently, international gold prices have pulled back from their highs. Wind data shows that as of 7:00 PM on March 17, the cumulative decline in COMEX gold futures prices since March has approached 5%.

Reports indicate that as gold prices fall, some consumers who bought investment gold bars at peak prices are now trapped, suffering significant losses. Experts warn that gold prices are already at historic highs, and ordinary investors should be cautious when purchasing gold bars.

Chasers are nearly 10% in the red

It has been learned that the total transaction fees for buying and selling investment gold bars on the market are generally around 2%. Even if gold prices do not fluctuate, cashing out at the original price results in a loss of dozens of yuan per gram. Since March, international gold prices have retreated from highs, and some investors who bought investment gold bars at peak prices are now facing nearly 10% unrealized losses.

“I bought a 20-gram investment gold bar on March 2 at 1,210 yuan per gram. Today, the selling price dropped to as low as 1,110 yuan per gram. After fees, I lost over 120 yuan per gram. I’m hesitant to buy more at the current prices,” said a novice gold bar investor to China Securities Journal.

It is worth noting that due to higher premiums on craft gold bars, gold medals, and similar products, investors who bought at peak prices face even more severe unrealized losses.

“Craft gold bars are over 200 yuan more expensive per gram than investment gold bars. Currently, sales of investment gold bars have been halted, mainly due to recent increases in gold material prices and changes in tax policies related to gold sales. However, zodiac gold bars, birthday gold bars, and other craft gold products are still being sold normally,” several gold shop sales staff told China Securities Journal during visits.

Jewelry gold consumption continues to cool

Although gold prices have retreated, mainstream jewelry gold quotes remain around 1,550 yuan per gram, so consumer enthusiasm for buying jewelry gold remains low.

Latest quotes show that on March 17, Chow Tai Fook priced at 1,551 yuan per gram, Chow Sang Sang at 1,550 yuan per gram, and Zhou Li Fook at 1,546 yuan per gram.

Additionally, visits revealed that most brands have raised prices again on “fixed-price” products. After the price hikes, sales have been relatively sluggish.

On February 28, Lao Puo Gold launched its first price increase of the year, with a rise of 20% to 30%. Recent visits found that many Lao Puo Gold stores are experiencing slow sales.

According to the China Gold Association, China’s gold consumption in 2025 is projected at 950.096 tons, a year-on-year decrease of 3.57%. Among these, gold jewelry accounts for 363.836 tons, down 31.61%; gold bars and coins total 504.238 tons, up 35.14%; industrial and other gold uses amount to 82.022 tons, an increase of 2.32%.

Institutions focus on gold price trends and M&A plans

From the performance of listed companies, gold mining companies generally perform well, while gold processing companies show more divergence.

Notably, many gold-related listed companies have recently been subject to intensive institutional research. The research content indicates that institutions are mainly concerned about future gold price trends, M&A plans for gold mines, and recent sales performance.

Regarding M&A strategies, Zhaojin Mining in its latest investor relations activity record mentioned that domestically, the focus is on provinces and cities outside of Zhaojin Group’s existing mining areas. Internationally, the focus is on Africa, Central Asia, and consideration of South America. In terms of target types, priority is given to projects in production or about to start production, as they are more attractive and easier to finance. Financing channels mainly include self-funding, bank loans, and capital market financing.

Shanjin International stated in its latest investor relations record that the company adheres to its development strategy of “increasing reserves and M&A,” with a dual drive. On one hand, it increases exploration investment and accelerates the transfer from exploration rights to mining rights for existing mines; on the other hand, it actively pursues domestic and international M&A to increase mineral resource reserves for sustainable development. For domestic resource M&A, the company mainly acquires resources around its existing mines and Shandong Gold’s nearby resources. For overseas M&A, it considers the characteristics of both the company and Shandong Gold.

Regarding the future trend of gold prices, Shanjin International stated that the company will adjust its sales strategy, with a reduction in gold sales in Q4 2025. Over the next three to five years, it expects the core trend of gold prices to be “moving upward with fluctuations.” Currently, the intensifying anti-globalization trend and ongoing global debt expansion are driving the monetary attributes of gold to continue returning. Meanwhile, long-term global uncertainties reinforce gold’s safe-haven properties. Under this background, central bank gold buying will continue, institutions will include gold in strategic allocations, and retail demand for risk aversion and wealth preservation will steadily grow, providing comprehensive support for gold prices. In the long term, the weakening of fiat currency credit and increasing safe-haven demand will continue to support an upward shift in the gold price median.