Many investors recognize two key forces driving global gold demand: the Fear Trade and the Love Trade.
The Fear Trade is familiar to most Western investors—it reflects a flight to safety during periods of economic uncertainty, inflation worries, rising interest rates, and geopolitical risks. Historically, gold has been a trusted safe haven during crises and recessions.
In contrast, the Love Trade stems from cultural traditions, religious practices, and increasing household incomes, especially in India and China, the world’s largest consumers of gold. Representing roughly 60% of global demand, the Love Trade is fueled by the purchase of physical gold as a symbol of status, celebration, and cultural heritage.
At the center of China’s Love Trade is Laopu Gold, a Hong Kong-listed luxury brand that recently caught investor attention.
A Cultural Phenomenon with Rapid Growth
Founded in 2009, Laopu Gold (meaning “Old Shop”) emphasizes traditional Chinese goldsmithing with a strong sense of cultural pride and nostalgia. Unlike typical jewelry retailers, Laopu markets exclusivity and exquisite design through high-purity 24-karat gold pieces sold at fixed prices and high margins. This unique approach has earned the company comparisons to “Hermès of gold.”
Laopu’s stock has surged over 2,300% in the 12 months leading up to June 4, 2025, and it is up 315% year-to-date—even as China’s overall economic recovery remains modest.
According to a JPMorgan investment note from May 28, Laopu is projected to hit nearly $20 billion in annual revenue this year—a 135% increase over 2024—with net income expected to reach $3.8 billion, more than doubling last year’s $1.5 billion. Impressively, the company reported a gross margin above 41%, nearly twice that of Chow Tai Fook, China’s largest traditional jeweler. Laopu’s average store revenue exceeds 100 million yuan, the highest among gold retailers nationwide.
Gold as Culture, Not Just Capital
What makes Laopu especially compelling is how it embodies gold’s cultural significance in China. Gold is deeply woven into Chinese traditions—given at births, worn at weddings, and passed down as heirlooms. Notably, younger consumers aged 18 to 34 now account for over a third of gold jewelry sales, according to Bloomberg’s Chongjing Li, highlighting a vibrant future for this cultural market.
Laopu Gold’s success reflects not just a booming luxury brand but the enduring power of gold as a symbol of identity, heritage, and prosperity in China.
