Gold Price in China Today

Shanghai versus London: two prices for the same metal

China has its own gold benchmark: the Shanghai Gold Exchange (SGE), which prices gold in yuan per gram. The SGE opened in 2002, and since April 2016 it has set the Shanghai Gold Benchmark Price for its Au99.99 contract twice each trading day, the first yuan-denominated gold benchmark.

Gold imports need approval from the People’s Bank of China, which licenses a limited number of banks to bring metal in. So when local demand jumps, supply cannot respond instantly, and the Shanghai price can sit at a premium to the international price for weeks. When demand is weak, the premium shrinks or turns into a discount. Traders watch that gap as a gauge of Chinese buying.

In September 2014 the SGE opened an international board in the Shanghai Free Trade Zone, letting foreign members trade yuan gold contracts. It was part of a wider effort to give China more influence over how gold is priced, alongside the benchmark launched two years later.

Measuring the Shanghai premium

1. Take the SGE Au99.99 price in yuan per gram.
2. Convert the international dollar price per ounce to yuan per gram: price × USD/CNY ÷ 31.1035.
3. Subtract the second figure from the first.
4. Divide by the international figure for the premium in percent.

For example, at an example $3,000 per ounce and 7.2 yuan per dollar, the international price is about ¥694.45 per gram. If the SGE traded at an example ¥700, the premium would be about ¥5.55, or 0.8%. The table higher on this page shows the straight conversion without any premium, and the dollar input is the live gold price.

Purity marks, retail pricing and buying seasons

Chinese jewelry is labeled under the national standard GB 11887, which uses names rather than karats for high-purity gold:

Most mainland gold jewelry is zu jin or better, a sharp contrast with the 14K and 10K pieces common in the U.S. Chinese buyers see jewelry partly as savings, and near-pure gold keeps the resale value close to the metal price.

Why retail prices include VAT

Gold jewelry sold in Chinese shops carries VAT at the standard rate, and that tax is built into the per-gram price on the counter rather than added at the till. It is one reason a brand’s daily zu jin price sits well above the exchange price even before labor.

How retail jewelers price

Big jewelry chains post a daily per-gram price for zu jin that also covers the brand’s margin and the cost of running shops. Labor is then charged per gram or per piece. Some items are sold at a fixed price per piece (一口价) regardless of weight, which usually means a higher effective price per gram. To compare, divide the tag price by the weight printed on the label.

When Chinese buyers buy

• Chinese New Year is the strongest season, with zodiac-animal pendants, charms and small bars given as gifts.
• The October Golden Week holiday brings another retail peak as families travel and shop.
• Weddings call for the “three golds” (sanjin): a ring, a necklace and earrings, with some families adding a bracelet and more.
• Births and first birthdays are marked with small gold lockets and bangles for the baby.

Retail demand in China is also price-sensitive in a way that surprises Western buyers. Sharp price rises can slow jewelry sales while bar and coin buying picks up, as buyers shift from wearing gold to saving it. Heavy retail buying at those seasons is one of the forces behind the Shanghai premium.

Most Chinese shoppers know the price in yuan per gram, the unit used by the SGE, by banks and by jewelers alike. Ounce prices from London or New York mean little to them until converted, which is why this page leads with the gram.

For this page in Chinese, see the China gold price in Chinese.

Chinese units, Panda coins and other ways to hold gold

Traditional Chinese weights were redefined in metric terms, so they are now round numbers of grams on the mainland. They are not the same as the Hong Kong units that share the names.

With an example price of ¥700 per gram (illustration only), a liang of pure gold costs ¥35,000 and a qian ¥3,500. Older relatives who still think in liang can use those multiples directly.

So a mainland liang of gold is 50 g, while a Hong Kong tael is 37.429 g. A price “per liang” quoted in the two places refers to different amounts of gold.

The Panda

The gold Panda bullion coin has been issued by the People’s Bank of China since 1982, with a new panda design most years. In 2016 it switched from troy ounces to grams, so the main coin is now 30 g of 999 gold rather than 1 oz. Fractional sizes are also issued. The year-by-year design changes give some older Pandas a collector premium.

Other ways Chinese savers hold gold

Beyond jewelry and coins, Chinese investors have several regulated routes into gold that follow the SGE price.

Bank gold accumulation plans

Many banks offer accounts that let customers buy gold a gram at a time, with the option of taking delivery of bars later. They suit savers who want to average into gold without paying jewelry labor. They are investment products rather than deposits, so read the terms on fees, spreads and delivery before signing up.

Exchange-traded gold

Gold ETFs listed in Shanghai and Shenzhen hold physical metal and trade in yuan. The SGE itself also runs deferred contracts such as Au(T+D), used mainly by professional traders.

Official reserves

The People’s Bank of China reports its gold reserves monthly, and additions to them are closely watched by the global market as a sign of official demand.

For the price of pure gold in dollars, see the 24K gold price.

Selling gold in China, mistakes and a glossary

Jewelers and recycling shops buy gold back at a recycling price (回收价) per gram, which sits below the retail price and usually close to the SGE price minus a margin. Labor paid on purchase is not refunded, and branded fixed-price items are valued only on their gold weight.

Common mistakes

• Comparing a brand’s retail zu jin price with the SGE price as if both were the same thing.
• Confusing a mainland liang (50 g) with a Hong Kong tael (37.429 g).
• Paying a fixed-price tag without checking the effective price per gram.
• Assuming a coin’s face value says anything about its gold content.

Bringing Chinese gold to the U.S.

Travelers returning to the United States list gold jewelry, coins and bars on the CBP declaration. There is no limit on the amount, but value above the personal exemption may be dutiable, and receipts showing weight and purity make the process quicker.

For large bars, the gold price per kilo gives the dollar value.

Hong Kong prices in taels are on the Hong Kong gold price page.

Glossary

• SGE: the Shanghai Gold Exchange.
• Zu jin (足金): gold of at least 990‰.
• Qian zu jin (千足金): gold of at least 999‰.
• Yikoujia (一口价): fixed price per piece.
• Huishou jia (回收价): buyback price.

Other currencies are on the gold price by country list.