HONG KONG, April 23, 2025 – Soaring gold prices, driven by global trade tensions and a rush for safe-haven assets, have triggered a frenzy at gold shops in Hong Kong’s Central district. Spot gold smashed through $3,500 per ounce on April 22, equivalent to roughly HK$27,000, before slightly easing on April 23. The unprecedented rally has drawn crowds to cash in, with Chung Kee Gold & Jewellery, a well-known local shop, reporting queues of up to 20 people and daily transactions worth tens of millions of Hong Kong dollars.
Chung Kee, famed for offering buyback prices about 1% higher than chain stores, has been overwhelmed. On April 23, its buy-in rate hovered between HK$30,400 and HK$30,600 per tael (approximately 37.8 grams). The shop’s entrance saw relentless lines, with wait times stretching to an hour. Owner Mr. Chung described the scene as “a sea of people,” with customer numbers surging over 50% above normal. “From 9 a.m. to 5 p.m., I’m scribbling non-stop with a pen, no time even to eat,” he said, noting the shop acquired gold worth tens of millions daily, mostly jewelry. The priciest item was a 3-kilogram gold rabbit, valued at over HK$2 million.
The surge reflects broader market dynamics. Fears of escalating tariff wars have pushed investors toward gold, driving prices to record highs. While some citizens sold gold to capitalize on the peak, about 10% of Chung Kee’s customers bought gold bars or granules, betting on further gains.
The gold rush has strained other shops in the area. Hoi Luen Gold, located next to Chung Kee, reported depleted cash reserves due to the influx of sellers, exacerbated by a recent holiday period. “The combination of sky-high prices and post-holiday traffic has been intense,” a Hoi Luen spokesperson said.
Despite the windfall, Mr. Chung remained pragmatic, even exasperated. “I don’t care about market trends,” he said, shrugging off questions about gold’s trajectory. “Honestly, I’d rather not have so many people—it’s overwhelming.” His focus remains on keeping up with the relentless pace, serving a mix of ordinary citizens, pawnshops, and industry insiders.
Gold’s meteoric rise aligns with global uncertainties, including trade disputes and geopolitical tensions, which have bolstered its appeal as a hedge. While prices dipped slightly on April 23, analysts suggest the safe-haven demand could persist if trade wars intensify. For Hong Kong residents, the boom offers a chance to profit, but the frenzy at shops like Chung Kee underscores the challenges of navigating such a heated market.
As Central’s gold shops brace for more crowds, the scene captures a city caught between opportunity and overload, with gold at the heart of it all.