Why a weak yuan is spurring a retail gold rush in China
The spread between the domestic and international price for the precious metal is at a decade highChinese consumers are racing for safety as they see their assets dwindleChina's economic recoveryHe Huifengin GuangdongPublished: 9:00am, 26 Sep, 2023Why you can trust SCMP
With the yuan weak, housing in the doldrums and stocks as insecure as ever, China’s working and middle class are turning to one investment option that is regaining some shine: gold.
For Chinese consumers with limited access to overseas investment products, the precious metal is one of the few ways they can try to counter the shrinking value of their other assets.
The yuan is only expected to weaken, but most Chinese individuals cannot buy US dollars or US dollar-denominated products to hedge against the Chinese currency’s fall.
Against that backdrop, the easiest option for the general public is to buy gold bars or gold jewellery at retail outlets, even if it means paying extra in processing fees.