China is buying gold like there's no tomorrow
gold surged this year to its highest price ever, Xena Lin joined the frenzy by making monthly purchases of gold «beans,» pebble-like morsels of the precious metal.
For Lin, a 25-year-old administrative worker in southern China, the $80 beans — small enough to rest on a fingertip and weighing about one-thirtieth of an ounce — were an affordable way to buy into the gold excitement without splurging for jewelry, gold bars or coins. She had dabbled with investing in stocks in the past, but she said buying gold, especially in this fun way, inspired her to continue investing.
«I'm still working hard to save more,» Lin said.
Often considered a safe investment during times of geopolitical and economic turmoil, gold has soared in price in response to Russia's invasion of Ukraine and the war in the Gaza Strip. But gold's climb to highs above $2,400 per ounce has proved more resilient, and lasted longer, because of China.
Chinese consumers have flocked to gold as their confidence in traditional investments like real estate or stocks has faltered. At the same time, the country's central bank has steadily added to its gold reserves, while whittling away at its holdings of U.S. debt. And throwing fuel on the fire are Chinese speculators betting that there is still room for appreciation.
China already held considerable sway in gold markets. But the country's influence has become more pronounced during this latest bull run — a nearly 50% increase in the global price
