Gold, the leading commodity, has drawn investors’ attention by reaching a new all-time high of $2,195 per ounce. Now, young Chinese investors are deploying capital to accumulate gold beans and other gold jewelry for wealth protection.
Interestingly, these beans have become very popular among China’s Generation Z, due to their accessibility by weighing one gram each. Therefore, around $76, if we would consider Gold’s price index of $2,155 per ounce.
However, each gold bean costs around 600 yuan, or $84.5, as reported by Bloomberg. This is mainly due to the beans’ costs of production and China’s premium on the commodity in a closed market.
Picks for you
Moreover, the Gold Telegraph described this investment phenomenon as a “gold rush” in China, posting on X on March 15.
Is it safe to invest in gold now?
Following the recent all-time high, investors may wonder if it is still safe to invest in gold. Although it is impossible to predict gold’s further price action, it has historically performed well under macroeconomic uncertainties as the world is currently in.
Notably, gold is one of the most solid and popular investments in human history. Furthermore, the commodity features as the leading asset by capitalization with over $14 trillion in market cap.
On that note, these young Chinese investors stockpiling gold means seem to believe this is a safe play long-term. It is also notable how the trend in China is directed to really holding gold, instead of betting on the commodity’s price performance through ETFs or other financial instruments.
In closing, Gold’s daily price chart in dollars per ounce shows strong momentum, for the popular investment commodity. Investors worldwide should now watch potential price support at $2,075 and trade cautiously.
For investors looking for alternatives, the cryptocurrency and the stock markets have developed similarly to gold recently, as reported by Finbold.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
