Young Chinese Embrace Gold Bean Investments as Economic Slowdown Intensifies, Bloomberg Finds

Yonhap News

Chinese in their 20s and 30s are turning to “Gold Bean” investments, trading small units of gold, to cope with economic stagnation.

On the 15th, Bloomberg reported that as China’s economic slowdown crisis intensifies, the popularity of Gold Bean, which allows relatively low-cost investments, is soaring, especially among younger generations.

The Gold Bean, which weighs only about 0.04 ounces, is priced at about 400 yuan ($55.6) to 600 yuan ($83.4). This is cheaper than gold bars that start at a minimum of 0.35 ounces.

China’s Generation Z rushed into gold investment, which was mainly for the middle-aged and older, due to its reasonable price and high accessibility.

According to Tmall and Taobao, China’s leading e-commerce platforms, the main consumers of gold in China in 2023 are those born after 1990.

The soaring popularity of Gold Bean has even led banks to collaborate with gold retailers to sell Gold Bean.

According to Chinese government statistics, gold and silver jewelry sales increased by 29.4% in December last year compared to the same period of the previous year, recording the highest in six years.

The international gold price is soaring, breaking through $2,100 per troy ounce for the first time this month.

Meanwhile, while global gold demand has decreased by 5%, investment in gold is increasing in China, the world’s largest gold-consuming country. Experts believe that China will have a considerable amount of borrowed gold in addition to official demand.