Hey there, folks! Your favorite American in China back again, bringing you the latest scoop from the Middle Kingdom. And this time, it’s shining – literally! Forget the tech buzzwords and the latest viral dances for a moment, because there’s a new obsession sweeping across China, especially among the younger generation: gold. Yes, you heard that right, gold!
Now, I know what you might be thinking. Gold? Isn’t that what our grandparents hoarded, or something you only think about when the stock market crashes? Well, in China right now, gold is having a major moment, and it’s not just your typical investment strategy. It’s becoming a cultural phenomenon, deeply intertwined with anxieties about the future and a quest for a sense of control in a rapidly changing world.
Let’s rewind a bit. For years, the dream for many ambitious young Chinese was to climb the ladder in the booming tech industry, often referred to as “Dachang” – big factories or big companies. These giants, like Alibaba, Tencent, and Baidu, were seen as the golden ticket, promising not just fat paychecks but also stock options and the allure of a company IPO that would make you rich overnight. Remember the phrase “waiting for the company to go public”? It was the mantra of a generation.
But things have shifted, dramatically. The once-unstoppable tech sector in China has faced headwinds in recent years. Economic slowdown, regulatory crackdowns, and fierce competition have led to widespread “cost reduction and efficiency enhancement” – a euphemism for layoffs and salary cuts. The infamous “35-year-old anxiety” has become a very real and looming threat, especially for those in the tech industry. Once considered the prime of their careers, 35-year-olds are now facing pressure to make way for younger, often cheaper, talent. The dream of company stock soaring and early retirement? For many, it’s starting to feel like a distant fantasy.
Enter gold. As the saying goes in China now, it’s shifted from “waiting for the company to go public” to “waiting for the gold price to rise”. For many “Dachang Ren” – big tech company employees – like our friend Li Junqi mentioned in a recent article on the 35-year-old anxiety of tech workers and gold, the allure of gold has become irresistible. Li Junqi, after losing a significant chunk of change in funds and US stocks – nearly 400,000 RMB in “tuition fees,” a Chinese way to describe losses from bad investments – has turned to gold as a safe haven. He’s not alone. Many who once chased high-risk, high-return investments are now flocking to the stability of gold. Even large deposit certificates, once a reliable fallback, are losing their appeal as interest rates continue to drop.
And guess what? Gold prices have been on a tear! Starting from 400 RMB per gram, they’ve climbed to over 600 RMB, and even pushing 900 RMB for jewelry gold! Li Junqi happily reports that his gold investments have yielded a 20% return, making it his most profitable asset. For him, and many others, gold is no longer just a shiny metal; it’s a “sea-stabilizing needle,” a metaphor for something that provides stability and reassurance amidst turbulent times. It’s their anchor in the stormy seas of economic uncertainty and career anxiety.
This isn’t just about investment though; it’s also become a social phenomenon. Wang Xiaoxiao, a sales professional at a tech company, noticed after the Lunar New Year holiday that her colleagues were sporting new gold jewelry – snake-bodied pendants, Cuban link chains, you name it. “You’re embarrassed to talk to colleagues if you’re not wearing some gold” – is how she jokingly puts it. Gold jewelry has become a conversation starter, a status symbol, and even a way to bond with colleagues. Those who “bought at the bottom” are hailed as heroes and often tasked with recommending vendors or even becoming personal shoppers for their peers.
Despite the high prices, the enthusiasm for gold shows no sign of waning. Kaka, a former Alibaba employee turned “Shuibei Daigou” – Shuibei personal shopper – confirms that tech company employees are among her main clients. Shuibei in Shenzhen is the largest gold jewelry wholesale market in China, often compared to Antwerp for diamonds. Kaka notes that gold jewelry with auspicious meanings and smaller, IP-themed pieces are particularly popular among “Dachang Ren”. Interestingly, more and more men are also getting in on the gold action, favoring rings and black gold leather cord bracelets. Women often buy gold accessories to DIY their own bracelets.
But, as with any investment, there are voices of caution. Wang Hongying, president of the China (Hong Kong) Financial Derivatives Investment Research Institute, suggests that the gold market in 2025 might see weaker upward momentum due to global economic and monetary policy adjustments. The safe-haven function of gold might also be somewhat diminished. Still, for now, the “gold content,” meaning both literally and figuratively “value” or “prestige” – of “Dachang Ren” is on the rise, both in their investment portfolios and their personal style.
This shift is also reflected in consumer behavior. Remember the days when Tiffany and Cartier were the must-have “workplace entry tickets”? Wang Xiaoxiao, who once bought a meteorite cufflink to avoid being seen as a “country bumpkin”, now sees things differently. After experiencing multiple rounds of layoffs and the harsh reality of the “cost reduction and efficiency enhancement” era, she’s traded her luxury goods for gold. She sold her Cartier bracelet on Xianyu (a Chinese second-hand marketplace), but even with a 10,000 RMB price drop, it didn’t sell quickly. She realized that her career path in cloud computing was narrowing, and switching to foreign companies meant a significant pay cut.
Now, Wang Xiaoxiao is all about “cost reduction and efficiency enhancement, increase income and reduce expenditure” – not just for companies, but for herself. She runs a career advice media channel to earn extra income and has embraced gold. Her Tiffany key necklace and Cartier nail bracelet have been replaced with gold bangles and “Gufa Jin” – ancient method gold – earrings. “Gufa Jin” refers to traditional Chinese gold craftsmanship, known for its matte finish and vintage look, which has become increasingly popular among young consumers.
When meeting clients, Wang Xiaoxiao strategically chooses her gold accessories. “Gufa Jin” bangles project an image of stability and reliability when dealing with traditional businesses. For internet clients, she might wrap a Hermès scarf around her gold bracelet for a more relaxed vibe. Even small gold items like phone stickers and gold foil banknotes have become her social currency. She gives them as gifts to clients and friends, a trendy and affordable gesture. She spent less than 3,000 RMB on over 50 gold phone stickers, each costing about the price of “two or three cups of milk tea,” a common way to describe small amounts of money in China.
For Anqi, another “Dachang” girl in her 90s, gold jewelry is like a “cyber-era electronic wooden fish”. The wooden fish is a Buddhist instrument used for meditation and stress relief. Anqi, facing immense work pressure, finds solace in her gold accessories. She used to be a shopaholic, buying clothes she never wore, but now she channels her spending into gold. Each month, she rewards herself with a gold charm with auspicious meanings like “promotion”, “salary raise”, and “no overtime”. She strings them into a bracelet, a tangible representation of her hopes and a form of “wearing deposit principal and interest.”
Kaka, the former Alibaba employee, believes that “Dachang Ren” commonly use consumption to relieve stress, and gold, with its social appeal, has become a popular choice. Her online shop “Kaka in Shuibei” on Xiaohongshu, a popular social media and e-commerce platform, has a relatively small following, but high customer retention. She benefits from the fact that source manufacturers are too busy with orders to focus on social media, while second-tier sellers lack price competitiveness.
Beyond jewelry, gold investment is also booming among “Dachang Ren”. Li Junqi, the product manager, recalls the fund craze a few years ago, when everyone was buying funds and discussing market trends during lunch breaks. Now, it’s all about gold. He used to be a “technology believer”, chasing high returns in Chinese concept stocks, US stock options, and crypto. But after losing 400,000 RMB, he turned conservative, opting for money market funds, government bonds, and large deposit certificates. However, when deposit interest rates fell below 3% in early 2023, he felt the returns were too meager.
Then came the “gold decade cycle” buzz in March 2023, fueled by the Silicon Valley Bank collapse and global risk aversion. Gold prices surged. Amidst ongoing tech layoffs, Li Junqi decided to try investing in gold ETFs. He bought 100,000 RMB worth, but still had sleepless nights, worrying about buying at a high point. However, comparing gold’s 20-year annualized return of 8% and lower volatility compared to US stocks, he felt it was still better than just keeping money in the bank.
As gold prices continued to “surge” throughout 2023, Li Junqi saw the potential. In early 2024, he started “gold accumulation regular investment” to mitigate volatility. He sets aside 5,000 RMB each month on payday to automatically buy gold, treating it like a mortgage payment, a form of “forced saving”, to avoid emotional trading decisions. When gold prices dropped after Trump’s election in November, he even added another 20,000 RMB, seeing it as a buying opportunity. He used to think buying gold was something “Dama” – middle-aged women – did, but now sees it as a truly “antifragile” asset, resilient to economic downturns and inflation. His gold assets have now exceeded 230,000 RMB, with a 20.1% return, far exceeding bank wealth management products and equity funds. Gold provides him with a sense of security to continue riskier investments.
However, experts like financial analyst Zhang Ming caution against blindly following the trend, pointing out the complexities of gold price fluctuations influenced by political events, global economics, and monetary policies.
For “Dachang Ren”, gold has become a “digital hard currency” against the uncertainties of the era. It doesn’t promise overnight riches, but offers a quantifiable sense of security.
Wang Xiaoxiao, despite splurging on luxury goods in the past, now becomes very price-conscious when buying gold. She even traveled back to her hometown in a smaller city during the Spring Festival to buy gold, finding it cheaper there – 695 RMB per gram compared to 720 RMB in Beijing, saving over 5,000 RMB on a 47.24-gram purchase. When gold prices soared to 891 RMB per gram after the holiday, she felt like she had made a smart move, “earned 10,000 RMB,” even though she spent 40,000 RMB. She started buying gold in October 2023 when it was around 460 RMB per gram, but initially only bought about 50 grams, worried about buying at a high point. Over the past year, she has accumulated nearly 200 grams of gold jewelry, feeling like she has earned nearly 60,000 RMB in 16 months, a return comparable to high-risk investments.
However, Kaka reminds us that physical gold jewelry has its drawbacks. “Physical gold may be discounted by 15% when sold urgently, and jewelry gold contains high labor costs, and is only priced by weight when recycled, the value is lower than the purchase price.”
Li Junqi, on the other hand, focuses on the “sense of security coefficient” of his gold investment curve. Without housing pressure, he used to spend his money on trendy consumer goods like sneakers, designer toys, luxury items, and NFTs, justifying them as “investments.” But when his department was laid off three years ago, he realized the “uncertainty” of the era and the “consumerism trap”. Limited-edition sneakers bought for 10,000 RMB could barely sell for 5,000 RMB. Now, facing renewed anxieties about job security, he finds comfort in the rising curve of his gold investment app. “The 35-year-old workplace crisis still exists, but at least gold gives me a tangible sense of ‘passive income’.” Gold regular investment has become his strictly executed “OKR” (Objectives and Key Results). For Li Junqi and others like him, gold is more than just an investment; it’s a psychological substitute for dealing with the “35-year-old curse”.
And the gold craze isn’t limited to seasoned investors or those with deep pockets. Enter the “gold phone sticker”. These tiny pieces of gold, often weighing just 0.1 gram or even less, are becoming the latest must-have accessory for young Chinese. Priced at “milk tea money” – around 30-80 RMB, they are an affordable way for young people to participate in the gold trend. Slogans like “get rich quick”, “princess please get rich”, and auspicious symbols are printed on these stickers, appealing to the desire for good fortune and emotional comfort.
Lingling, a recent college graduate, bought several gold phone stickers for under 100 RMB, seeing them as decorations, not investments. Xiao Jiang buys them as gifts, hoping to bring good luck to his friends. According to a report, young Chinese are buying 0.1g of gold to stick on their phones, and social media platforms are flooded with posts about gold phone stickers, with over 200,000 sold on Taobao in 2024, mainly to young women aged 25-30. They are an “emotional consumption” product, providing “emotional value” at a low price point.
Gold jewelry brands are jumping on the bandwagon, launching collaborations and incorporating trendy slogans. Brands like Laomiao Gold, China Gold, Chow Tai Seng, and CHJ Jewellery are releasing IP-themed and slogan-based gold phone stickers and other small gold items. Chow Tai Seng, for example, collaborates with IPs like National Treasure and Monêt Garden and uses slogans like “good things happen” (a pun on persimmons), and “no anxiety”.
Huang Chongwang, founder of a jewelry B2B service provider, explains that while gold phone stickers have been around for years, they only recently became popular due to improved manufacturing techniques that allow for thinner, lighter, and more varied designs. They cater to the “pleasing oneself” and emotional needs of young people.
This trend is reminiscent of the “Gu Zi economy” – referring to the economy of merchandise related to anime, manga, and games (AMG), or ACG culture. Like “Gu Zi” – AMG merchandise, gold phone stickers are low-priced, low-investment value, but high emotional value items. Xiao Zhou, a fan of “Gu Zi”, compares gold phone stickers to “Itasha phone cases”, similar to “itabag,” bags decorated with AMG merchandise. Both are about personal expression and emotional connection.
Gold phone stickers, however, also have a collectable aspect, similar to “Gu Zi” sets. Brands are releasing series of gold stickers, encouraging repeat purchases and “collection album” behavior, aligning with the “paying for emotional value” mindset of young consumers.
However, the price per gram of gold in phone stickers can be much higher than regular gold jewelry due to the small amount and high markup. Still, they represent a diversification of gold consumption among young people, shifting from “heavy asset” to “light experience”, and from “essential for value preservation” to “essential for emotional needs”.
Looking ahead, industry insiders predict that young people’s gold consumption will further integrate with culture and entertainment, incorporate more technology, and focus on cultural meaning and sustainability.
Then there’s the “home-based gold making” trend! As gold prices soar, some young people are even taking matters into their own hands, learning “ancient gold beating techniques” at home. Wumeng, a handicraft blogger with over 1.2 million followers, posted a video of herself learning gold beating at home, which went viral. Inspired by the “melting old gold to make new jewelry” trend and gold bar customization, some young people are melting down their mothers’ old gold jewelry to create new, personalized pieces.
Wumeng learned gold beating from her elders who run a gold shop. She found it surprisingly accessible, spending just an afternoon learning the basics. Her video showcasing the process of making a gold pendant attracted a lot of attention, with many expressing interest in learning DIY gold making. Some even turned it into a business, with online posts claiming monthly incomes of 50,000 RMB from home-based gold making. Online retailers are also selling gold making tools and supplies, catering to this DIY trend.
Wang Bing, a veteran in the gold jewelry industry, notes the rising demand for “Gufa Jin” and the increasing number of young customers seeking trendy designs online. The practicality and personalization of “gold beating” appeal to young consumers. One gold shop owner in Hangzhou reports a doubled order volume and working until 1 AM to meet demand. In Shuibei, themed gold jewelry like the “Qiankun Ring bracelet” inspired by the movie Ne Zha, are becoming hot items.
Beyond DIY, young people are also embracing other new gold consumption patterns. “Gold beans” are still popular for savings. Gold exchange programs offered by brands like Chow Tai Fook appeal to fashion-conscious consumers. And of course, the gold phone stickers offer an entry point for everyone to join the gold craze.
As another article states, young Chinese are also concerned about “buying gold equality”, and a lack of “deservingness” when they enter Gold shops.
According to a report by Txia Net Business, soaring gold prices has seen young people “making gold at home,” earning 50,000 a month.
So, is this gold rush just a fad, or a sign of deeper shifts in young Chinese consumer culture and financial attitudes? It’s likely a mix of both. While the current gold fever may cool down as economic conditions change, the underlying trend of young people seeking stability, emotional comfort, and personalized experiences through gold consumption is likely to continue. It’s a fascinating story of how ancient traditions meet modern anxieties and aspirations, all wrapped in a shiny, golden package.
Stay tuned for more insights from China! And let me know in the comments – are you tempted to join the gold rush?
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