How to Trade and Buy Gold in Hong Kong? Beginner’s Guide for Non-local

Gold has always been sacred and valuable in our culture. Especially in today’s age of inflation, gold has emerged to be one of the best-performing assests. Interested in buying gold in Hong Kong? Let’s see this complete guide to avoid making stupid mistakes!

We also wrote about a comprehensive comparison of which is better between Hong Kong Gold and Saudi Arabia Gold that you can also check out.

Why should you buy gold in Hong Kong? 

Gold has been resistant to the drastic economic challenges. It has remained unchanged despite the presence of other factors that affect stocks and investments. Gold is also considered as a way to diversify your investments. It can be one’s go-to investment once the market goes downhill.

On top of that, gold is an easy to buy and convert to cash. This enables many investors to avail gold easily and liquidate it to cash when the need arises.

5 factors that affect gold prices in Hong Kong

Gold in Hong Kong can be as much as 10% cheaper than mainland gold. In fact, a lot of people, even from the mainland, prefer to buy gold in Hongkong for its very cheap prices. Many factors can be attributed to this, but the following are the biggest drivers.

  • Inflation

Gold, being dollar-denominated, moves inversely with the US dollar. The stronger the US dollar is, the more controlled gold value is. On the other hand, the weaker the US dollar is, the higher the price of the gold can soar through increased demand

  • Interest rate

When rates rise in tightening cycles, holding onto and lending out cash gives more profit. This often pushes investors to de-risk by selling assets such as stocks and bonds.

In such an instance, investors look for uncorrelated assets that are related to these macroeconomic factors, which is usually gold.

  • Demand

Gold is not only a necessity in the jewelry-making industry. It is also a necessity in the manufacturing sector. Gold prices go up when interest rates go down. This stabilizes an economy and therefore serves as a resistance against inflation.

  • Geopolitical Factors

Geopolitical factors such as natural resources, climate, topography, as well as political powers in play. Any geopolitical tensions can upset international trade and influence financial markets in a negative way. 

  • Government policy

Gold reacts positively as the pause cycles extend and governments ease monetary policies.

Type of gold to buy in Hong Kong

While it is a good idea to buy Hong Kong gold, knowing the best type of it will help a potential investor make the most out of it. 

  • Gold

Gold is a highly malleable and ductile metal. Ductility is the ability to be drawn and deformed without breaking or getting fractured. Malleability  is the capability of being shaped  by methods such as hammering and forging. It is yellow in shape, lustrous, and also dense.

  • Gold-alloy

Gold-alloys are combinations of gold along with other elements such as silver, copper, aluminum and many others. They usually have a high percentage of gold– around 80% to 85%. These kinds of gold are also known as colored gold.

  • Platinum

Contrary to gold, platinum has a silver-white color. It is very heavy, precious and ductile– even more ductile than silver and gold. It can very much resist corrosion and remain stable in extremely high temperatures. Those who want to buy Hong Kong gold might want to consider platinum as it has risen in terms of popularity as the consumer’s first choice.

Where to buy gold in Hong Kong? Pros & Cons

Hong Kong is filled with good places where you can buy Hong Kong gold. However, knowing which one suits your needs best is to your advantage.

  • Banks

The easiest way to invest in gold is through retail banks. Banks in Hong Kong such as Shanghai Commercial Bank, Hang Seng Bank, Wing Lung Bank, and many others offer such opportunities for potential investors in physical gold trading services. However, keep in mind that some of the banks do not stock gold and may be a disadvantage to investors. Best way to avoid this inconvenience is to gather information through calling the bank prior to making an official investment.

  • Jewelry shops and Gold dealers

Like banks, jewelry shops and gold dealers offer an accessible option to potential investors. However, the danger in this option is that not all staff are skilled gemologists. With this disadvantage, potential investors might not be able to get the adequate information they need in buying these precious metals.

You can check out our article about the best place to buy gold in Hong Kong to know more.

  • Online trading platforms

Technology makes buying gold in Hong Kong easier. In fact, it is the most accessible among the options listed here. If you want to buy Hong Kong gold, you can try websites such as Blue Nile and James Allen.

However, much like the jewelry shop staff, online retailers will not likely be able to educate you in the essential know-hows of diamonds and gold. You might also not be able to resize the ring made from these metals, you might also have a hard time returning it since it can get pricey.

5 things to consider before buying gold

After figuring out where to buy gold in Hong Kong, know the factors you need to weigh in before buying.

  • Storage method

When you buy Hong Kong gold, think of how you want to store it. You can opt to allot a space in your house to put a vault or safe and keep your gold there. You can also explore other options that do not store your gold in your home.

  • Market price

When demands rise and supply become limited, prices are most likely to go higher, It will be best to check out how demand and supply will play along before officially investing.

  • Associated fees

Owning Hong Kong gold entails some fees that the owners are expected to pay. Check out the laws governing your area and inquire to the offices concerned to find out how much your fees are.

  • Investment return

With fees attached to gold ownership and gold’s close relationship with the US dollar, return of investment might take a longer time than you might have expected. The rule of the thumb is that you should not think of gold stocks in a similar way as physical gold.

  • Potential risks

While resistance to volatility is promised most of the time, you should never be too confident. There’s always risk in investment. Do the necessary research and the necessary preparations for price volatility.

Step by step guide to buying gold in Hong Kong

Now that everything is settled, follow these guidelines in buying Hong Kong gold. This will ensure you that you get the best experience investing and availing the gold.

  • Buy from credible providers only

Do research about prospect providers, and ask for papers proving their credibility. You can also join online communities to scout for customer  comments about your prospective provider.

  • Aim for highest purity

Read the fine print as it will contain vital details such as purity or fineness level. Look for the caratage and assaying, which is mandated by the law to be stamped in every gold available for purchase. The highest available as of writing is 24k.

  • Ask for an authenticity certificate

Every retailer must have this certificate from the government that indicates details such as the gold’s fineness. Look for the “Quality Gold Mark” which is awarded by the Jewelers’ Associations. Having this seal means that the product is authentic, and that it follows the standards and practices set by the said associations.

  • Be sure the gold is within budget

Save before you invest– that is the basic rule of economic stability. Make sure you have the money you need to invest before diving in. Loaning just to avail gold might only plunge you into debt when the prices dive down.

  • Find a safe place to store

Most people often vie for a vault that can store the gold they own and allot a space in their house. Prepare for payments you might have to add such as gold insurance.

Owning Hong Kong gold can look intimidating, but with enough knowledge and preparation, you can easily navigate your way throughout the process.


Hong Kong Jewellers’ and Goldsmiths’ Association


Emperor Finances Group

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