SHENZHEN — Even amid the economic downturn, gold has lost none of its luster for Chinese consumers, with people in their 20s and 30s finding new ways to enjoy the precious metal.
Jinshan Jewelry Square, a Shenzhen market with nearly 500 stores, was crowded with shoppers and onlookers on a recent day. The shop owner, in his 30s, weaved his way through the crowd to broadcast a TikTok livestream to 23,000 viewers, fielding questions about prices from online viewers.
A businessman in his 30s who visited the market bought a gold bracelet for more than 10,000 yuan ($1,400).
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“The price of gold continues to rise, so I’m not worried about the value going down,” the woman said.
Love of gold has long been part of Chinese culture. Gold is generally popular among older Chinese people, both as a gift and as an investment asset.
However, the recent craze for so-called golden beans is all among young people. The beans are 1 gram of pure gold, and are often stored little by little in jars. This suggests a desire for a tangible expression of wealth during times of economic uncertainty.
One salesman says, “Gold is still bought because it’s easy to understand changes in value, and it’s a different kind of excitement than just saving money.”
Lefu, one of China’s largest jewelry store chains, sells coffee beans, fish, gold beans shaped like xiaolongbao, and solid gold piggy banks to store them online. .
Gold purchases by young people are a major source of income for jewelry stores. A survey by industry leader Chou Tai Fook found that around 70% of 18-40 year olds expressed interest in purchasing gold jewelry. In fact, sales of the company’s signature gold products increased 20% year-on-year in fiscal 2024, with nearly half of the purchases coming from people under 35.
Chinese consumers bought 294.6 tonnes of gold in jewelry, bars, coins and other forms in the January-March period, an increase of 13% from a year earlier, the World Gold Council (WGC) reported. China accounts for 37% of global consumer demand for precious metals.
Rising gold prices are playing a big role in driving these purchases, but the trend is a little different from traditional commercial or investment purposes.
Chow Tai Fook research found that 64% of Gen Z consumers purchase gold jewelry as a treat for themselves or for everyday use. They buy because they want the money, and the products they buy tend to be affordable.
The most popular item at a store in Kanayama Jewelry Square is a 1-gram gold card with words such as “Happy Birthday” engraved on it. There are also thin sheets a few centimeters on each side with pictures of famous characters on them. According to the store, the buyer had placed the phone under a transparent smartphone cover.
Half of the store’s customers come from outside Shenzhen.
A representative said, “We exchange contact information with customers via WeChat, and when new products come out, we contact them and sell them online.”
Designs are constantly evolving to appeal to young consumers with fickle tastes.
A woman in her 20s who visited the market said, “Even the high-class gold accessories I bought two years ago felt very old.” “I’m going to trade it in and buy something of equal or greater value,” she added, starting to look for her next purchase.
Young people’s tastes are also starting to influence traditional gold jewelry.
A representative from WGC China said, “We are seeing an increase in lightweight, well-designed products and easy-to-purchase products for beginners.”
Chow Tai Fook’s recent bestseller is a combination of gold and diamonds.
“Cash values tend to decrease when purity is less than 24 carats,” the company said. “We have expanded our range by creating designs for young people while also focusing on investment products.”
China’s purchasing power is also felt in the international market for precious metals. Spot gold prices on the Shanghai Gold Exchange have been higher than the international benchmark in London for more than a year.
However, not all young people are jumping on board.
According to a report by the National Bureau of Statistics, the unemployment rate for 16- to 24-year-olds in China was 13.2% in June, almost three times the overall unemployment rate of 5%. Only a small percentage of young people get high-paying jobs that allow them to participate in the gold rush.
A 20-year-old office worker in Shanghai went to a store looking for gold jewelry to give to his bride, but gave up, saying, “Right now it’s very expensive. I won’t be able to buy it until it gets cheaper.”
