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Gold Beans: Buying Fever among Young People in China

In recent years, a notable demographic change is observed in the gold market in China. Traditionally associated with older generations, gold is now capturing the interest of young people, particularly that of Generation Z.


Gold beans and China's flag
In China, Generation Z's inclination to buy gold increased from 16% to 59%, between 2016 to 2021

According to reports from Tmall and Taobao, China's main e-commerce platforms, the greatest consumers of gold jewelry in China are now those born after 1990.


For its part, the consulting firm Mob Data revealed that Generation Z's inclination to buy gold increased from 16% in 2016, to 59% in 2021, marking the highest spending potential among all age groups. Furthermore, the China Gold Association (CGA) reported that gold consumption in the country increased by 16.37% during the first half of 2023.



Factors Driving the Purchase of Gold among Young Chinese People


The search for security in times of economic uncertainty is one of the main reasons driving the growing interest of young people in gold. With youth unemployment at 15% in the cities, and salary reduction in many companies, young people aspire to maximize their savings in safe investments.


In 2023, while the stock market fell and home prices declined, gold’s price went up by 12%. In the first 5 months of 2024 it went up 11.5%, making it an attractive option for young people to protect savings.


Additionally, China's central bank has been buying gold to diversify its reserves and reduce its dollar holdings; In Q1 2024, according to a report from the World Gold Council, it acquired 27 tons. This influenced the increase in gold demand in the domestic market.



Cultural and Aesthetic Aspects related to Gold in China


Gold jewelry is considered not only an investment, but also a luxury good that can increase in value. Gold jewelry with "China-Chic'' designs and engravings with cartoon characters popular in the 1990s are gaining popularity among young women in China. Not only do these jewelry meet the need for aesthetics and luxury, but they also offer a sense of long-term financial security.



Golden Beans. Safe Investment?


The gold beans, which weigh about one gram and cost around 600 yuan (US $80 Dollars), are the stars of the current buying fever among young people in China, becoming a popular investment.


These gold beans are affordable compared to other forms of physical purchase of gold such as bullion and traditional jewelry. Their popularity has also been fueled by social media, where young people share their collections and personal experiences on platforms such as Xiaohongshu, promoting a sense of achievement and psychological satisfaction.


Despite its popularity, the purchase of gold in this way is not without risks. Many young people have reported problems with gold beans being mixed with other metals, or that they weigh less than advertised. Online influencers recommend using blowtorches to verify gold’s fineness, although they warn about the risk of melting the savings. Therefore, it is crucial that young people acquire adequate financial knowledge in order to maximize the benefits and minimize the risks associated with investing in gold.



Protect your Savings


Aktagold's mission is to help people around the world protect their money from the economic and financial instability of their countries of origin, giving them access to savings in physical gold kept in the most secure vaults in Canada, an option that previously used to be reserved only for those with the highest incomes.


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