Stepping into 2023, ushering in the good year of "Double Spring and Leap Moon", many people take the opportunity to "buy the skylight". Goldware is a must-have accessory for brides at weddings. It carries the blessings of the elders to the new couple and can also show the owner decent home.
However, the price of gold is affected by the external economic environment, with a difference of 20% between the high and low levels last year, and there are also newcomers who choose to rent gold utensils.
Huang Cui-ling, the founder and CEO of "KALLiSTi", a gold shop that provides goldware rental services, accepted an interview with "Hong Kong 01" to dismantle why there is a market for "first-hand" goldware rental, and revealed that the goldsmiths behind them are most surprised by "sit on goods".
Huang Cuiling pointed out that the launch of the service of leasing gold utensils can help newcomers avoid the risk of gold price fluctuations.
(Photo by Lu Yiming)
Gold has always been regarded as a safe-haven and value-preserving product. Due to the uncertain external economy, the price of gold is unstable. At the beginning of last year, the price of gold was around US$1,800/oz. After rising to a high of US$2,078/oz in March, it fell for several consecutive months. , as low as $1,618 per ounce, with a correction of more than 20%.
Spot gold was hovering around $1,820 an ounce.
However, in order to support the wedding scene, gold is also indispensable. In addition to the gold utensils given by the elders, the couple will also prepare a certain amount of gold utensils themselves.
Huang Cui-ling, the founder and CEO of "Qianjin KALLiSTi", said that the price of gold has fluctuated greatly in recent years. Many people want to prepare goldware for marriage, but they don't want to buy too much goldware at one time. Therefore, they launched the service of leasing goldware to help newcomers avoid gold price fluctuations "I don't want them to be unhappy on their wedding day, buy gold for their wedding, and end up not even being able to pay for the building."
Huang Cuiling pointed out that due to factors such as gold jewelry does not retain its value and is difficult to preserve, newcomers may choose to rent gold objects.
(Photo by Lu Yiming)
Rental demand stems from three factors
Furthermore, there is no physical gold for gold ornaments to preserve value. If you buy gold for value preservation, you should choose gold bars and gold grains instead of gold ornaments, because gold ornaments will have miscellaneous costs such as fire consumption, commissions, and manual costs, and the cost of cashing out will be higher. .
Huang Cuiling said that basically the selling price of gold jewelry is the cost of pure gold plus handwork. "The selling price divided by two is the actual price of gold."
In addition, Huang Cuiling pointed out that many newcomers will consider the issue of gold storage. "Firstly, there is a cost. It is at least 2,000 yuan a year to rent a safe in the store, and secondly, it is very difficult to find a safe at home!" Therefore, most couples and their families choose In the form of "half-buy, half-rent", rent a four-piece gold set for about 6,000 to 8,000 yuan, that is, necklaces, bracelets, earrings, gold rings, and buy gold grains, gold bars and other products.
"Maybe the (goldware) given by the elders is not satisfactory, so I come to rent it, and some just rent it because I lost one of them," Huang Cuiling continued. , will only be kept as a souvenir, but on the day of the wedding, I will wear fashionable goldware.”
Huang Cuiling revealed that since the company is mainly engaged in wholesale business, it can recycle gold wares for recasting.
(Photo by Lu Yiming)
Wholesale business as "backup" without fear of loss of gold recasting
In fact, marriage is also a new beginning for many people, and it is understandable for the bride to want to use a golden tool.
Taking this into consideration, all the gold jewelry leased out by Qian Jin is sold as "new first-hand", and the used goldware is melted down and recast.
But doing so will result in losses. Aren’t you afraid of “bottom erosion”?
Huang Cuiling revealed that since the company is mainly engaged in wholesale business, it will also recycle gold wares from different companies. The recovered gold wares will all be melted down and recast, which saves a lot of money. Although the process is somewhat wasteful, the current technology for making gold wares is advanced , can save three-quarters of the gold consumption.
She continued that, similar to 3D (three-dimensional) printing, electroplating gold on the model instead of injecting gold into the model involves less gold. In addition, three-dimensional models are also popular in styles, which are larger and thinner."
Huang Cuiling pointed out that the current technology for making goldware is advanced, which can save three-quarters of the gold consumption.
(Photo by Lu Yiming)
Huang Cuiling said frankly that many peers in the industry provide goldware rental services, most of which are not first-hand goldware, and damages to goldware may also require compensation, but since her company will melt down the goldware and recast it, as long as the customer returns it in full That’s right, “Gold is soft in nature, easily deformed and scratched, and as long as goldware is used, there must be traces.”
She also introduced that renting goldware in Qianjin only needs a deposit for three days and two nights. If you provide designated identification documents, you only need 70% of the deposit. The most expensive goldware set in the store is 10 pairs of dragon and phoenix bracelets, 2 A necklace, a pair of earrings and a pair of dragon and phoenix rings, the market value is about 400,000 yuan, but the rental price is only 18,880 yuan.
The gold factory is not the most surprising "sit on goods" of the treasury
Leasing first-hand goldware is a great "good news" for newcomers, but is it a profitable business for daughters?
Huang Cuiling pointed out that there are currently 60 orders per month, and it is expected to double this year.
She also pointed out that the reason why the service of renting first-hand goldware can be launched in 2020 is because one of the partners is operating a gold factory, thereby deriving the business of wholesale, retail and rental of goldware.
The outside world may think that the gold factory has a mysterious large vault, but this is not the case. Huang Cuiling pointed out that the gold factory will have a certain amount of gold bars in stock, not a large vault. , and surprised to be robbed by others”, she also described that everyone engaged in the gold trading industry is low-key, and the location of the gold factory is generally not disclosed to outsiders.
Huang Cuiling pointed out that the gold factory will have a certain amount of gold bars in stock, but it is not a large treasury.
(Photo by Lu Yiming)
Rather than saying that the gold factory is a gold warehouse, it is better to say that it is a gold processing factory. Huang Cuiling pointed out that the most important thing in the wholesale business is liquidity, and the retail business does not need inventory. When there is an order, it will go outside to buy gold and then remake it. After buying it, no one buys it for a year or two, and if the price of gold falls by half, it will be a big deal. The business of making gold will not be a big deal, and the gold pendulum will cost tens of thousands.”
In order to avoid the risk of "sit in goods", in addition to enabling the circulation of goods, risks can also be transferred. Huang Cuiling pointed out that hedging can reduce the impact of gold price fluctuations, and at the same time, the cost of buying and selling gold must be continuously transferred. It doesn’t matter if you sell it back to the individual customer, you buy it and you sell it.”
