China’s Gen Z consumers are increasing their investment in “gold beans”, what is this?

These beans are very popular especially among Chinese Gen Z.

Young Chinese people have recently become more interested in gold products, with more and more people buying “gold beans” as a safe investment amid economic uncertainty. These pill-like beans weigh only about 1 gram and cost between 400 and 600 RMB (Rs. 5,209 and 7,814) each.of Straits Times These beans are extremely popular, especially among China’s Gen Z, who reported that buying gold beans every month has become a new trend.

Gold, in particular, is one of the most solid and popular investments in human history. Traditionally, middle-aged and older Chinese consumers have been the main consumers of gold, but now Gen Z is also interested in these products and sees them as viable long-term investments. The main reasons for this are its relative affordability and availability, as well as the fact that gold has historically performed well in times of macroeconomic uncertainty. Kyo Nippo report.

“Small 1 gram gold nuggets are particularly attractive to Gen Z customers, while young couples and middle-class women prefer gold bars. 10 gram and 50 gram bars are particularly popular,” says the business. said developer Fred Chiu. A manager at a jewelry brand in eastern China said: South China Morning Post.

Lack of trust in traditional investments is also another cause behind the gold rush. In 2023, China’s leading e-commerce platforms Tmall and Taobao revealed that the main consumers of gold jewelry are people born after the 1990s. Another survey revealed that 70% of consumers between the ages of 18 and 40 intend to purchase solid gold jewelry.

Gold has also returned 5.8% annually over the past 30 years, and the global spot price of gold hit an all-time high late last year, demonstrating its status as a reliable investment.

“Amid economic and political uncertainty, gold has become more reliable than other domestic assets, whether real estate or stocks. Why are so many people still buying it? I understand,” said Annie Fan, a Guangzhou resident.

Sales of gold, silver and jewelry rose 29.4% year-on-year in December 2023, reaching a six-year high, according to government data.according to ReutersAnalysts expect China’s demand for gold to remain strong as economic growth slows in coming years and foreign investment outflows weigh on the yuan.

“Incomes aren’t going up, real estate isn’t going up, the stock market isn’t going up,” said Jack Roizen, managing director of consulting at Digital Luxury Group in Shanghai. is like a unicorn.”

China and India, the world’s two largest gold buyers, together account for more than half of the world’s total demand.