China has been collecting Gold like they are infinity stones. Both the average Chinese consumer and China’s central bank have flocked to Gold as their confidence in more traditional investments has diminished.
Gold prices have soared to unprecedented heights this year, breaking records left and right. Xena Lin, a 25-year-old office worker from southern China, has been diligently purchasing gold “beans” each month for US$80. The surge in prices, surpassing US$2,400 per ounce, has been attributed to the strong influence of China in the market. Chinese consumers are turning to gold as a haven, losing faith in traditional investments.
China’s central bank has also been steadily increasing its gold reserves while reducing its US debt holdings. The country’s impact on the gold market has been undeniable during this bullish period, with prices skyrocketing by almost 50% since late 2022.
Gold consumption in China has seen a 6% increase in the first quarter compared to the previous year, making gold investing more appealing as traditional investment options lose their luster.
