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Here in China, lots of respect is shown to elderly persons. So, if by addressing them as Sir or Mam you are showing just respect for others, to them it is understandable that they may think you are calling them old. It is a question of culture, and nothing else. I do that sometimes because I do have a problem remembering Chinese names. I resoved the issue by addressing them as "my friend" instead of Sir or Madam.

No. Nothing wrong at all, if they are older than you. That IS showing them respect.
I call my students "ladies and gentlemen," to remind them that they are indeed, young ladies and young men. They always tell me, "we are girls and boys," but I counter with the fact that by the time one reaches the late teen and early twenties it's time to grow up.
I treat them like the adults that they should be. Ready or not, here comes the real world!

There is nothing wrong with calling somebody sir or ma'am unless of course you are calling the guy ma'am or the gal sir.
A long time ago I was in boot camp and an airmen was called to the table of the t.i. also called the pit. I thought the t.i. lady was a little rude to the airmen as she did not look up into his eyes or got up to greet him. She simply called him to the table. The airmen called the gal a sir repeatedly as to get under her skin. She finally had enough of it and told the airmen to say: 'sir' to her one more time and that she 'dared' him to do it. Well, he said 'sir' one last time and next thing you know he was covered in spaghetti, meatballs and apple sauce.

mattaya, are you going to insult the air force by saying they don't kept enough discipline to allow him to call the training instructor "Sir" more than once, and she finally responding by childishly throwing her food?
Well good try at least trying to add creativity to your stories.

A long time ago? Michael Thomas, you are in your early 20s. There is no long time ago with you.