Watch This | 'Gold beans' go viral among Chinese youth, have you purchased them?
Chinese younger generations have recently developed an appetite for yellow metal: gold products. Unlike previous generations who craved golden items in a larger size, such as bullion, these young consumers particularly endorse "gold beans (gold products that have a small weight or size)." The relatively affordable price has attracted young people wanting to cash in on these small pieces of gold, with many finding it acceptable to spare a couple of hundred Yuan from their salary to buy one gold bean per month.
Younger generations enjoy discussing their experiences of saving gold on social media platforms to inspire one another. There are blogs about saving for "gold beans" across the Internet, such as "the best ways to buy gold" and "how to get your first bottle of gold beans."
Data from TianYanCha, an APP that gives information to social organizations internationally, shows that there are over 75,000 jewelry-related enterprises in China, with 38.5% of them having been established in the last five years. Over 70% of gold shop clients are between the ages of 25 and 35, according to the 2021 China Gold Consumption Insight. Social media and e-commerce platforms play a crucial role in marketing, making e-commerce an essential channel for young people to purchase gold.
Some shop staff have observed that storing little gold items has become a trendy new financial fad among young Chinese. They often purchase 1-3 grams of gold each week or month, which acts as forced savings to avoid being a "spendthrift" and gives them a sense of joy and fulfillment from shopping.
Experts further disclose that keeping gold is a safety net and economic reserve. Gold, as a hard currency, is one of the most reliable refuge assets. It's possible that young people are worried about upcoming economic difficulties and seek to ensure their financial stability by gathering gold. At the same time, gold is considered as a valuable asset and a means of investment. Young people may aim to accumulate wealth and achieve long-term financial growth through saving gold.
However, it's worth noting that if consumers purchase gold for investment purposes, they need to be aware of the risks involved. A spokesperson from the gold industry pointed out, "Gold prices are highly volatile, and saving gold beans requires long-term investment. During this process, if market prices rise significantly, investors may miss the opportunity to sell and fail to achieve the expected returns." "Additionally, there are operational risks involved in saving small gold products. Investors, for instance, need to possess certain professional knowledge and abilities to select gold purchasing channels, confirm their authenticity, and store and maintain gold.
Industry experts advise that saving gold products can be seen as an investment opportunity, but investors need financial knowledge and risk awareness. They should carefully choose the right time and method for investment. Consumers should not be deceived by certain gimmicks, especially regarding the purity of gold, as it affects future liquidity. It is crucial to pay attention to repurchase channels, requirements, and factors like gold price fluctuations. Avoid unthinkingly following the trend of buying gold.