Gold beans rise in popularity among China's gen-z investors
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Beijing: A new trend is emerging among young Chinese consumers as they increasingly turn to 'gold beans' as a secure investment option amidst economic uncertainties.
These pill-like beans, weighing approximately one gram each, are priced between 400 and 600 RMB (Rs 5,209 and 7,814) per unit.
According to reports, China's Generation Z has shown a particular interest in these gold beans, with purchasing one every month becoming a popular trend. Traditionally, gold has been a favored investment choice among China's middle-aged and elderly population. However, younger generations are now embracing these products due to their affordability, accessibility, and historical performance as a stable investment under macroeconomic uncertainties.
"Little one-gram beans of gold are particularly attractive to Gen Z customers, while young couples and middle-class women prefer gold bars – the 10-gram and 50-gram bars are especially popular," said Fred Qiu, a business-development manager for a jewelry brand in eastern China, to South China Morning Post.
One of the driving factors behind this shift towards gold investments is a lack of faith in traditional investment options.
Recent data from China's leading e-commerce platforms reveal that consumers born after the 1990s are the primary buyers of gold jewelry, with a significant portion intending to purchase pure gold jewelry. Gold has also demonstrated strong returns over the past three decades, with an annualized return of 5.8%. Moreover, global spot prices for gold reached all-time highs late last year, further solidifying its status as a reliable investment choice.
"Incomes are not appreciating, real estate is not appreciating, the stock market is not appreciating. Gold is a little bit of a unicorn in this environment," said Jacques Roizen, managing director of consulting at Digital Luxury Group in Shanghai.
Sales of gold, silver, and jewelry in China witnessed a significant increase in December 2023, with a 29.4% year-on-year jump, according to government data.
Analysts anticipate that Chinese demand for gold will remain high in the coming years, especially as economic growth slows and foreign investment outflows impact the yuan.