China’s gold rush: why families are doubling down on precious metals
South China Morning Post
by He HuifengFebruary 14, 2026
AI-Generated Deep Dive Summary
China is experiencing a surge in gold demand as families across the country invest heavily in the precious metal ahead of the Lunar New Year. With gold prices hitting record highs and market uncertainty growing, households are viewing gold not just as a festive gift but also as a financial safety net. The rising popularity of gold reflects its dual role as a symbol of social status and an investment asset that is perceived to hold value during economic instability.
The surge in gold sales has been driven by significant price increases, with spot gold reaching nearly US$5,600 per ounce in January before stabilizing around US$5,000. Despite global market volatility, gold prices remain near historic highs, fueling demand in China. Gold jewelry is now selling for over 1,529 yuan (US$221) per gram, a sharp increase from its price around Valentine’s Day last year. This has led to a boom in the sale of gold-plated silver jewelry, particularly in factory hubs like Dongguan, where migrant workers are among the key buyers.
Gold-plated silver jewelry has become a popular gift option due to its affordability compared to pure gold items, while still offering potential value retention. Migrant workers returning home for the Lunar New Year often carry gifts such as food, cash-filled red envelopes, and jewelry for their families. With both gold and silver prices rising, gold-plated pieces are increasingly seen as a desirable choice for gifting.
The growing interest in gold reflects broader economic concerns in China. As the global economy faces uncertainty and inflation remains a pressing issue, gold is viewed as a reliable hedge against financial instability. For Chinese households, investing in gold not only aligns with cultural traditions of gift-giving during the Lunar New Year but also serves as a practical strategy to preserve wealth amid an unpredictable economic landscape.
This trend highlights the deep-rooted significance of gold in Chinese culture and its enduring appeal as both a decorative item and an investment asset. As China navigates economic challenges, the demand for gold is likely to remain strong, further shaping global market dynamics and reinforcing its role as a key financial instrument in times of uncertainty.
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Originally published on South China Morning Post on 2/14/2026