<p>Chinese consumers seeking a “safety net” are gobbling up gold even with prices at record levels.</p>
<p>The Chinese Lunar New Year holiday (Feb. 17) typically boosts Chinese gold demand. This year, buying is hotter than ever, even with elevated prices. As <a href="https://www.scmp.com/economy/china-economy/article/3343554/chinas-gold-rush-why-families-are-doubling-down-precious-metals" target="_blank" rel="noopener">the <em>South China Morning Post</em> describes it</a>, rich and poor alike have caught gold fever.</p>
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<p>“From migrant workers splashing out on gold-coated jewelry, to white-collar workers pouring their savings into gold-linked investment funds, the metal is widely seen not only as a marker of social respectability, but also as a safety net amid an uncertain world.”</p>
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<p>The Lunar New Year is a major gift-giving holiday in China. Migrant workers return to their home villages laden with gifts.</p>
<p>Consumers are reportedly snapping up 1-gram gold “beans” as a holiday gift.</p>
<p>“<em>It feels more thoughtful than a red envelope with 1,000 yuan in cash</em>,” Liu Huilan told the <em>SCMP</em>.</p>
<p>Major Chinese retailers report gold jewelry is selling for an average of ¥1,529 (US$221) per gram. That’s up from an ¥890 average during the same period last year.</p>
<p>The <a href="https://www.moneymetals.com/gold-price">higher gold price</a>, coupled with the <a href="https://www.moneymetals.com/silver-price">surging silver price</a>, has boosted the popularity of gold-plated silver jewelry. A jewelry shop owner told the <em>South China Morning Post</em> that it is much more affordable, and it will likely hold its value like pure gold jewelry. He said that he expected gold-plated jewelry to become even more popular as the silver price continues to rise.</p>
<p>Gold investment demand is also surging, particularly among middle-class workers in the cities.</p>
<p>Yang Ling works as a translator in Beijing. She said geopolitical instability is driving her and many of her friends to gold as a safe haven.</p>
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<p>“When we heard about the Venezuela and Middle East situations worsening in early January, we invested more in gold that same day.”</p>
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<p>She said she plans to invest her year-end bonus in a gold ETF.</p>
<p>Chinese buying helped push <a href="https://www.moneymetals.com/news/2026/01/30/gold-demand-topped-5000-tonnes-for-the-first-time-in-2025-004647">gold bar and coin demand</a> to a 12-year high of 1,374.1 tonnes. In value terms, global bar and coin demand was a record-breaking $154 billion.</p>
<p>More than half of the global coin and bar demand came from two countries – China and India.</p>
<p>Chinese have also turned to gold ETFs over the last year, with Chinese funds more than doubling their gold holdings in 2025 (+133 tonnes). Meanwhile, Indian funds charted eight straight months of gold inflows to wrap up the year.</p>
<p>ETF demand is so strong that the Chinese government recently required banks to tighten risk-management policies last month, requiring investors to pass more stringent risk assessments before purchasing gold-related financial products.</p>
<p>A gold ETF is backed by a trust company that holds metal owned and stored by the trust. In most cases, investing in an ETF does not entitle you to any amount of physical gold. You own a share of the ETF, not gold itself. ETFs are a convenient way for investors to play the gold market, but <a href="https://www.moneymetals.com/news/2024/03/08/paper-gold-vs-real-gold-its-important-to-know-the-difference-003038">owning ETF shares is not the same as holding physical gold</a>.</p>
<p>One gold investor told the <em>South China Morning Post</em> that he expects gold investment to remain robust, even if the gold price rises more slowly, because it provides a sense of security.</p>
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<p>“Gold’s gains this year may not match last year’s, but it remains the safest bet.”</p>
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