Gold’s strong rally this year has fuelled growing interest in monthly gold savings schemes in Hong Kong, drawing not only local residents but also foreign domestic workers seeking an affordable way to accumulate the precious metal.
Gold prices have pulled back from recent highs, but bullion is still up more than 17 percent so far this year, reinforcing its appeal as a hedge against uncertainty.
In Hong Kong, that demand has spilled into so-called “gold saving plans”, or "gold club membership", which allow customers to make fixed monthly payments and redeem gold jewellery at a discounted price after a year. The plans have gained popularity because of their low entry thresholds, forced-savings features and promotional rebates.
Jennifer, a Filipina domestic worker who arrived in Hong Kong three months ago, told Sing Tao Daily, the Standard’s sister publication, that she joined a gold savings scheme after seeing her employer regularly buy gold. While working in Saudi Arabia previously, she had hoped to buy gold but found it difficult to set aside a large lump sum, as much of her income was remitted home to support her family.
Jennifer opted for a plan requiring monthly contributions of HK$500, attracted by the affordability of not having to pay a large lump sum and that the scheme effectively forced her to save. Although gold prices have risen sharply since she joined, Jennifer said, “I’m just happy to be able to buy gold.”
Jewellery retailers offer similar schemes with varying returns and incentives. Chow Tai Fook Jewellery’s (1929) club, for example, offers monthly contributions ranging from HK$300 to HK$3,000. At the top tier, a HK$3,000 monthly plan, including a half-price first installment, requires HK$34,500 in total contributions for the year and can be exchanged for HK$37,000 of pure gold, an annual return of about 7.2 percent.
Emperor Watch & Jewellery (0887) offers monthly plans from HK$300 to HK$2,000. A HK$2,000 monthly plan requires total contributions of HK$23,000 for the year, exchangeable for HK$24,700 of pure gold, yielding an on-paper return of about 7.4 percent.
Beyond potential returns, sign-up gifts are a key attraction. Emperor offers diamond vouchers ranging from HK$200 to HK$1,000 and other premium gifts, while participants contributing HK$500 or more receive one to two gold charms. Chow Tai Fook provides vouchers worth HK$50 to HK$200 and a piece of silver jewellery.
