China’s Generation Z consumers are increasingly investing in “golden beans.” What are these?

These beans are especially popular among China’s Gen Z

Young people in China have recently become interested in gold products and are increasingly buying “golden beans” as a safe investment amid economic uncertainty. The pill-shaped beans weigh only about 1 gram and cost between 400 and 600 yuan (Rs 5,209 to 7,814) each.this straits times According to reports, these beans are especially popular among China’s Generation Z, and buying a golden bean every month has become a new trend.

It is worth noting that gold is one of the most reliable and popular investments in human history. Traditionally, China’s middle-aged and elderly people have been the main consumers of gold, but now, Generation Z is also turning to these products and sees them as viable long-term investments. The main reasons are relatively affordable prices and accessibility, as well as the fact that gold has historically performed well during macroeconomic uncertainty, Jingdai the report said.

“One-gram small gold beans are particularly attractive to Gen Z customers, while young couples and middle-class women prefer gold bars – 10-gram and 50-gram gold bars are particularly popular,” said business developer Fred Qiu.A manager of a jewelry brand in East China told South China Morning Post.

Lack of confidence in traditional investing is another reason behind the gold rush. In 2023, China’s leading e-commerce platforms Tmall and Taobao revealed that the main consumers of gold jewelry are those born in the 1990s. Another survey showed that 70% of consumers aged 18 to 40 are interested in purchasing pure gold jewelry.

Over the past three decades, gold has delivered an annualized return of 5.8%, and global gold spot prices hit a record high late last year, demonstrating its status as a reliable investment.

“Amid economic and political uncertainty, gold is becoming more credible than other domestic assets, whether real estate or stocks. I can understand why so many people are buying it,” said Fang Anni, a Guangzhou resident.

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

“Income is not appreciating, real estate is not appreciating, and the stock market is not appreciating. Gold is a bit like a unicorn in this environment,” said Jacques Roizen, managing director of the consulting department of Shanghai Digital Luxury Group.

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