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 high levels. 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%.

Our reporter learned 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.

Chasing the high has resulted in nearly a 10% loss

The reporter found that the total transaction fees for buying and selling investment gold bars on the market are generally around 2%. Even without price fluctuations, cashing out at the original price results in a loss of dozens of yuan per gram. Since March, international gold prices have retreated from high levels, 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 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 have experienced even more severe unrealized losses.

“Craft gold bars are more than 200 yuan per gram more expensive than investment gold bars. Currently, investment gold bars are no longer on sale, 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 remains sluggish

Although gold prices have declined, mainstream jewelry gold quotes still hover 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 gold at 1,551 yuan per gram, Chow Sang Sang at 1,550 yuan per gram, and Zhouliufu at 1,546 yuan per gram.

Additionally, our visits found that most brands have raised prices again on “fixed-price” products. After the price hikes, sales have remained tepid.

On February 28, Lao Puo Gold launched its first price increase of the year, with a 20% to 30% hike. Recent visits to multiple Lao Puo Gold stores revealed cold sales.

According to data from the China Gold Association, in 2025, China’s gold consumption is expected to reach 950.096 tons, a year-on-year decrease of 3.57%. Among these, gold jewelry consumption will be 363.836 tons, down 31.61%; gold bars and coins will total 504.238 tons, up 35.14%; industrial and other gold uses will be 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.

Recently, many gold-related listed companies have been extensively surveyed by institutions. The survey content indicates that institutions are mainly concerned about future gold price trends, M&A plans for gold mines, and recent sales performance.

Regarding company M&A strategies, Zhaojin Mining disclosed in its latest investor relations activity record that domestically, it focuses on regions outside its existing mines. Internationally, it emphasizes Africa, Central Asia, and considers South America. In terms of target types, priority is given to projects in production or about to start production, as these 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 efforts to boost exploration investments and accelerate the transfer from exploration to mining rights for existing mines. It also 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, such as those near Shandong Gold. For overseas M&A, it considers the characteristics of both the company and Shandong Gold.

Regarding the future trend of gold prices, Shanjin International said that the company plans to 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.” The current global anti-globalization trend and ongoing expansion of global debt are driving the continued return of gold’s monetary attributes. Meanwhile, long-term global uncertainties reinforce gold’s safe-haven properties. Under this background, central bank gold purchases are expected to 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 center.

Our reporter: Dong Tian

(Edited by: Wen Jing)

Keywords: Gold Price