Gold is gaining popularity in China ahead of Tet, as people believe it offers a strong financial safety net during challenging times. This demand comes amid an unprecedented surge in gold prices.

Spot gold reached a record high of nearly 5,600 USD per ounce in late January before settling at around 5,000 USD. Despite global market volatility, gold prices in China continue to stay near historical highs, driven by demand ahead of the Lunar New Year.

On Valentine's Day on 14/2 this year in China, jewelry gold was sold at major retailers for over 1,529 yuan (221 USD) per gram, an increase from 890 yuan on Valentine's Day last year.

An employee at a gold and silver shop in Yangzhou, Jiangsu province, showcases a new year gold bar on 29/1. *Photo: AFP*

In a gold and silver center in Guangzhou, consumers are actively purchasing one-gram gold pieces shaped like small beans or bouquets as holiday gifts.

"Gifting gold feels more meaningful than a lucky money envelope with 1,000 yuan in cash", said Liu Huilan, an office worker in Guangzhou who purchased three gold beans for her nephews.

Getty He, a recruitment manager also living in Guangzhou, anticipates Chinese families will continue to invest in gold this year. While the metal may not offer high returns, it provides a sense of security amidst ongoing instability in China's stock market and real estate sector.

"Gold's increase this year may not be as significant as last year's, but it remains the safest option", she affirmed.

Small, bean-shaped gold pieces displayed at a jewelry shop in Taiyuan city, Shanxi province, China in 2025. *Photo: Xinhua*

The sharp increase in gold and silver prices has made gold-plated jewelry more popular, as it is affordable yet still retains value, according to Chen Li, an employee at a jewelry store in Dongguan, Guangdong province.

"Consultation requests and sales of gold-plated silver items have significantly increased before the Lunar New Year, primarily from migrant workers at nearby factories", Chen stated, adding that the recent surge in silver prices could further accelerate this trend this year.

The value of silver increased by nearly 148% throughout 2025 and has remained at high levels, trading at 77-79 USD per ounce in recent days.

Middle-class families in China's major cities are investing more in gold, as the metal has become a safe-haven asset amidst global geopolitical volatility.

"Upon hearing that the situations in Venezuela and the Middle East were worsening in early January, we invested more in gold that very day", said Yang Ling, a translator in Beijing.

Yang plans to allocate her year-end bonus to gold exchange-traded funds (ETFs), which are investment funds designed to track and replicate gold price movements in the market. Certificates for these funds are listed and traded on stock exchanges.

Gold ring jewelry in a jeweler's shop in Shanghai on 27/1. *Photo: Reuters*

However, the continuous rise in gold prices also presents challenges for many, particularly in rural China. The Lunar New Year is a peak season for engagements and weddings in rural areas, as millions of young people return home to celebrate Tet.

Many households feel significant pressure to purchase the "three golds", traditional wedding gifts consisting of a gold ring, necklace, and bracelet. With sharply rising gold prices, parents realize they must save for many years to afford them.

Zhan Weiwei, originally from Shanxi province in northern China and now a taxi driver in Guangzhou, is preparing for the future marriage of his 15-year-old son. At current prices, the "three golds" set costs at least 50,000 yuan, a substantial burden for an average working family.

"I plan to save money to buy about 5 grams of gold each year", Zhan said. "By the time my son gets married, I am sure I will have enough".

Hong Hanh (According to SCMP)