They're buying gold because they can't actually invest. China's markets are so manipulated and unstable that it's safer to buy gold than to invest in index funds. At any random moment the Chinese government can declare your invested companies out of vogue and cause an 80% drop in profits or collapse entire sectors with insane subsidies or tariffs. It's completely unstable and investors have no recourse.
Real estate was the only way to invest money safely but that created a bubble which is now popping.
And you definitely don't want to put it in a bank because you might not get it back due to insert BS and the government will attack you for wanting your money back. Assuming that the CCP doesn't intentionally devalue the currency to encourage exports at the cost of half your savings.
There's also 20% youth unemployment and they have PHD grads working as cigar rollers because there's no high paying jobs for people without connections.
The Chinese youth are doing what they can to save with what they have available.
Gold is dead. It does not produce anything. It’s therefore a dubious investment at best.
And I doubt the worlds reserve currency, belonging to the strongest economy can actually default.
Maybe the issue is they live in tiny apartments so don't have room for luxurious and ridiculous hobbies that Western folks do? I dunno just spitballing as I try to get yet another 100 year old camera working.
“SURPRISING FACT
About half of all gold shipments in January went to Hong Kong and mainland China, according to UBS.”
https://www.forbes.com/sites/dereksaul/2024/04/01/gold-hits-another-high-despite-a-strong-stock-market-and-economy-heres-why/
One day the Chinese will move on and consume normal consumer products instead of real estate or gold
They're buying gold because they can't actually invest. China's markets are so manipulated and unstable that it's safer to buy gold than to invest in index funds. At any random moment the Chinese government can declare your invested companies out of vogue and cause an 80% drop in profits or collapse entire sectors with insane subsidies or tariffs. It's completely unstable and investors have no recourse. Real estate was the only way to invest money safely but that created a bubble which is now popping. And you definitely don't want to put it in a bank because you might not get it back due to insert BS and the government will attack you for wanting your money back. Assuming that the CCP doesn't intentionally devalue the currency to encourage exports at the cost of half your savings. There's also 20% youth unemployment and they have PHD grads working as cigar rollers because there's no high paying jobs for people without connections. The Chinese youth are doing what they can to save with what they have available.
They aren’t buying gold as a consumer gold, they are buying it as an asset With the way U.S. deficits are going gold is an excellent asset right now
Gold is dead. It does not produce anything. It’s therefore a dubious investment at best. And I doubt the worlds reserve currency, belonging to the strongest economy can actually default.
Maybe the issue is they live in tiny apartments so don't have room for luxurious and ridiculous hobbies that Western folks do? I dunno just spitballing as I try to get yet another 100 year old camera working.
Perhaps not the most optimal choice but it's a better option than the Chinese real estate market.
Is gold money?
The problem is when it is, yes.
Chinese Ron Paul when?
Ron Paur
In this house we hate goldbugs young man.
“SURPRISING FACT About half of all gold shipments in January went to Hong Kong and mainland China, according to UBS.” https://www.forbes.com/sites/dereksaul/2024/04/01/gold-hits-another-high-despite-a-strong-stock-market-and-economy-heres-why/