CITIC Securities: In the short term, there is a negative correlation between gold prices and the sales volume of gold jewelry.

The research report of CITIC Securities Investment stated that consumers consider both consumption and investment attributes when buying jewelry gold, but CITIC Securities Investment believes that the consumption attribute is greater than the investment attribute. As a consumer product, the basic principle of jewelry gold consumption in the short term is that the total price is basically fixed, and short-term rapid fluctuations in gold prices will directly affect the sales volume of jewelry gold. Reviewing the four instances of sharp rise/fall in gold prices since 2012, the conclusion is as follows: in the short term, there is a negative correlation between gold prices and retail sales of gold jewelry. The larger the fluctuation in gold prices, the greater the opposite change in sales volume, but the duration of the impact is not fixed, ranging from 3 to 9 months.