FOR many affluent young Chinese consumers, modern simplicity is out and tradition is back in when it comes to jewelry.

Sales of gold bracelets, pendants, earrings and necklaces that draw on dragons, phoenixes, peonies and other traditional Chinese patterns and symbols are flying among consumers, especially those in their 20s and 30s, helping drive a rebound in gold demand in the country after a pandemic-induced slump.

An e-commerce boom and national pride are fuelling the rise in demand for what is known as heritage gold jewelry, which requires intricate craftsmanship and can command premiums of 20 percent or more over conventional gold jewelry, industry executives say.

The popularity of these new pieces began to take off in mid-2020 and helped gold jewelry demand in China -- the world’s top consumer of the metal -- more than double in the first half of 2021 from a year earlier to pre-pandemic levels, according to the World Gold Council.

A strengthening economy and improving consumer spending are helping sales. Young consumers’ interest in the classic designs and often chunky gold jewelry with a matte finish marks a turnaround in their appetite for the precious metal, previously eschewed as a sign of wealth and status symbol for older generations.

It also provides a boost for gold at a time when demand from India, the world’s second largest consumer, has been hit as the pandemic delayed weddings, where gold is traditionally included in the dowry.

Major Chinese jewelry retailers like Hong Kong-listed Chow Tai Fook Jewelry Group Ltd. and Luk Fook Holdings International Ltd. said their heritage gold collections are doing well especially among young consumers.

Chow Tai Fook, China’s largest jeweler by market value, said its heritage gold collection accounted for 40 percent of the total value of its retail sales of gold products on the mainland in its fiscal year that ended in March 2021, up from 29 percent the previous year, faster growth than for other jewelry.

Part of heritage gold jewelry’s appeal, especially among young consumers, reflects a desire to be patriotic.

“The younger generation grew up when China’s economy was stronger, they have more confidence in Chinese development and may have less admiration for Western culture,” said Roland Wang, managing director of WGC China.

“They want to have more traditional Chinese culture in their daily life, which can be represented through what they wear or how they decorate their home. ... Heritage gold can deliver this.”

In anticipation of longer-term demand, gold jewelry manufacturers are stepping up investment in heritage gold. A manager at a Shenzhen-based manufacturer, who declined to be identified, said his firm is mainly promoting heritage gold this year after receiving large orders from major brands and customers.

“After seeing the trend, our company expanded research and development on design and technology to create more new designs of heritage gold. Other gold jewelry manufacturers in Shenzhen are doing the same,” he said.

The China Gold Association said heritage gold jewelry has become the main driving force in the industry’s recovery from the impact of the pandemic.

According to industry and market research consultancy Beijing Zhiyan Kexin Consulting, the market for heritage gold in China increased tenfold between 2017 and 2019, and is seen reaching nearly 100 billion yuan (US$15.43 billion) by 2024. Its share of China’s gold jewelry market is forecast to jump from less than 2 percent in 2017 to nearly a quarter by 2024.

“Gold jewelry enterprises are rapidly recognizing the importance of cultural value and are digging deep into it,” the consultancy said in a report in January.(SD-Agencies)