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At the center of Shanzhen, a city in southern China not too far from Hong Kong, lies a special little district called Choi Bai. Choi Bay is known as a place to go if you're looking to buy one specific thing.

At the center of Shanzhen, a city in southern China not too far from Hong Kong, lies a special little district called Choi Bai. Choi Bay is known as a place to go if you're looking to buy one specific thing.

Tribe is among the largest gold retail markets in the world, and definitely the largest in China by volume of gold.

Tribe is among the largest gold retail markets in the world, and definitely the largest in China by volume of gold.

That's Bloomberg reporter Chong Jingle based in Hong Kong.

That's Bloomberg reporter Chong Jingle based in Hong Kong.

So if you go to the Shribune market there are like more than ten thousand business clustered across several city blocks. You will be greeted by endless rows of glittering jury that would make your head spin, and at almost any time of the day, the place always buzzes with crowds of customers eagling, browsing, selecting, and snapping up their favorite pieces.

So if you go to the Shribune market there are like more than ten thousand business clustered across several city blocks. You will be greeted by endless rows of glittering jury that would make your head spin, and at almost any time of the day, the place always buzzes with crowds of customers eagling, browsing, selecting, and snapping up their favorite pieces.

The popularity of this market has been fueled in part by live streamers who hog their gold on doin Chinese TikTok. And while gold has always been a popular commodity in China, the investment demand for the precious metal is attracting attentionately.

The popularity of this market has been fueled in part by live streamers who hog their gold on doin Chinese TikTok. And while gold has always been a popular commodity in China, the investment demand for the precious metal is attracting attentionately.

With the slowdown in the Chinese economy, people have been shrinking their spending on all kinds of goods. Joey purchases like diamonds have really taken a hit as Chinese buis have tightened their belts, But the allure of gold as the safe place to park one's cash remains, and we are seeing consumers showing percent and demands for investment products like gold bars and coins as a way to safeguard wealth.

With the slowdown in the Chinese economy, people have been shrinking their spending on all kinds of goods. Joey purchases like diamonds have really taken a hit as Chinese buis have tightened their belts, But the allure of gold as the safe place to park one's cash remains, and we are seeing consumers showing percent and demands for investment products like gold bars and coins as a way to safeguard wealth.

Welcome to the Big Take Asia from Bloomberg News. I'm wanh. Every week we take you inside some of the world's biggest and most powerful economies and the markets, tycoons and businesses that drive this ever shifting region. Today on the show China's Gold Rush, Why are Chinese consumers so keen on the precious metal, what's driving the dizzying rally in gold and how long will it last? Gold is popular all over the world, but in China the commodity is appreciated on a whole other level. The Chinese love gold. It's not just a symbol of beauty, luck and fortune. In China, gold often means something special and marks important milestones.

Welcome to the Big Take Asia from Bloomberg News. I'm wanh. Every week we take you inside some of the world's biggest and most powerful economies and the markets, tycoons and businesses that drive this ever shifting region. Today on the show China's Gold Rush, Why are Chinese consumers so keen on the precious metal, what's driving the dizzying rally in gold and how long will it last? Gold is popular all over the world, but in China the commodity is appreciated on a whole other level. The Chinese love gold. It's not just a symbol of beauty, luck and fortune. In China, gold often means something special and marks important milestones.

So when you're born, it's typical for others to give you golden bracelets for your wrists and ankles, and when you get married, you door yourself in gold. In Hong Kong, where I'm based, during the wedding banquet, brides will be covered in gold ornaments. I'm talking about gold bengals stacked up to the elbows. These oversized twenty four cara gold necklace are usually in the shape of pigs, which symbolizes well, prosperity and fertility. And gold is also just the kind of jury that you can pass on for generations.

So when you're born, it's typical for others to give you golden bracelets for your wrists and ankles, and when you get married, you door yourself in gold. In Hong Kong, where I'm based, during the wedding banquet, brides will be covered in gold ornaments. I'm talking about gold bengals stacked up to the elbows. These oversized twenty four cara gold necklace are usually in the shape of pigs, which symbolizes well, prosperity and fertility. And gold is also just the kind of jury that you can pass on for generations.

Cho Jing, who was born in mainland China, grew up understanding gold special role not just in Chinese culture, but also for her family.

Cho Jing, who was born in mainland China, grew up understanding gold special role not just in Chinese culture, but also for her family.

Actually, my parents had this ritual like every couple of years, dates strolled into a bank like casually by some gold bars, brinted home and locked away like it was the family treasure, and there comes Lou the new year. They'd dust off the statue and let me marvel at the shiny golds bars like I was holding a piece of pirate.

Actually, my parents had this ritual like every couple of years, dates strolled into a bank like casually by some gold bars, brinted home and locked away like it was the family treasure, and there comes Lou the new year. They'd dust off the statue and let me marvel at the shiny golds bars like I was holding a piece of pirate.

Louwait, so they would like on lunar new Year, open up the safe and bring out the gold.

Louwait, so they would like on lunar new Year, open up the safe and bring out the gold.

Yes, and there would show the goads to me and say, look, this is our treasury.

Yes, and there would show the goads to me and say, look, this is our treasury.

Wow, now, out of curiosity, how many bars would there be? Typically this is a secret, of course, chong Jing says. A lot of older Chinese stash their gold at home. She says it's kind of a tradition. The older generation like to have their wealth where they can see it and touch it when they want to. They prefer that to keeping it in an account in some faraway bank converted to a currency that risks depreciating with inflation. But recently chong Jing noticed that buying gold isn't just a thing that older Chinese do. Young people in China are now also flocking to the gold markets.

Wow, now, out of curiosity, how many bars would there be? Typically this is a secret, of course, chong Jing says. A lot of older Chinese stash their gold at home. She says it's kind of a tradition. The older generation like to have their wealth where they can see it and touch it when they want to. They prefer that to keeping it in an account in some faraway bank converted to a currency that risks depreciating with inflation. But recently chong Jing noticed that buying gold isn't just a thing that older Chinese do. Young people in China are now also flocking to the gold markets.

We have seen young people spending their savings often not too much like on gold purchasing. Actually, consumers aged eighteen to thirty four now make up over a third of gold jury sales.

We have seen young people spending their savings often not too much like on gold purchasing. Actually, consumers aged eighteen to thirty four now make up over a third of gold jury sales.

And changing what kind of gold are they buying?

And changing what kind of gold are they buying?

They usually buy small pieces of gold jewelry around five to six grams. It's just like small pieces gold ear rings, gold bracelets, and gold rings. I don't think young people are so much into gold bars. They're usually into like gold beans, those little things.

They usually buy small pieces of gold jewelry around five to six grams. It's just like small pieces gold ear rings, gold bracelets, and gold rings. I don't think young people are so much into gold bars. They're usually into like gold beans, those little things.

Gold beans like the size of a jelly bean.

Gold beans like the size of a jelly bean.

Yes, what do you do with gold beans. They just save it in a small bottle. Every month they will collect a gold bean and put it into the bottle, so it's.

Yes, what do you do with gold beans. They just save it in a small bottle. Every month they will collect a gold bean and put it into the bottle, so it's.

Like a little visual piggy bang of gold beans. Yes, exactly changing. Talk to several young people who bought gold in Shroi Bay, some of them even traveled across several provinces some hundreds of miles to the market. They told her that Shoibet is a great attraction for a couple of reasons, and not just for the gold.

Like a little visual piggy bang of gold beans. Yes, exactly changing. Talk to several young people who bought gold in Shroi Bay, some of them even traveled across several provinces some hundreds of miles to the market. They told her that Shoibet is a great attraction for a couple of reasons, and not just for the gold.

First, it's because there are a lot of good quality knockoffs Ashrebe. You can get jury pieces that look just like those from VanClief and Oppos or Tiffany's just for a fraction of the cost.

First, it's because there are a lot of good quality knockoffs Ashrebe. You can get jury pieces that look just like those from VanClief and Oppos or Tiffany's just for a fraction of the cost.

Another main draw is Shroybet's straightforward pricing system.

Another main draw is Shroybet's straightforward pricing system.

So jury here is sold on a simple formula, which is really interesting. So the formula is a base gold price packed to the exchange benchmark and the craftsmanship fee of around ten ym program and a lot of people will bargain for the price.

So jury here is sold on a simple formula, which is really interesting. So the formula is a base gold price packed to the exchange benchmark and the craftsmanship fee of around ten ym program and a lot of people will bargain for the price.

Schroy Bay isn't just the largest gold retail market in China, it's also a manufacturing hub, which means.

Schroy Bay isn't just the largest gold retail market in China, it's also a manufacturing hub, which means.

You can also diy your own design theer. You can go there and melt your jury into gold bars, and you can also do the opposite, melt your gold bars into diy jewelry.

You can also diy your own design theer. You can go there and melt your jury into gold bars, and you can also do the opposite, melt your gold bars into diy jewelry.

So you can actually bring literal gold that's sitting around your house and they'll melt it in front of you. Yes, Chong Jing says. Young people in China used to think gold jewelry was tacky, something the nuvo riche would wear to show off. But that's changing, and now young consumers are stashing gold for the same reason as their parents.

So you can actually bring literal gold that's sitting around your house and they'll melt it in front of you. Yes, Chong Jing says. Young people in China used to think gold jewelry was tacky, something the nuvo riche would wear to show off. But that's changing, and now young consumers are stashing gold for the same reason as their parents.

They see gold as a secure option compared to other investments. You know, at a time when the Chinese stock market has seen a lot of turbulence, the economy has been hammered by the slump in the real estate market. That's really sent consumer confidence plunging, not to mention a depreciating currency.

They see gold as a secure option compared to other investments. You know, at a time when the Chinese stock market has seen a lot of turbulence, the economy has been hammered by the slump in the real estate market. That's really sent consumer confidence plunging, not to mention a depreciating currency.

This frenzy demand from China helped push the country to beat India as a world's top consumer of gold jewelry. In twenty twenty three.

This frenzy demand from China helped push the country to beat India as a world's top consumer of gold jewelry. In twenty twenty three.

Gold and Focused a just shy of twenty eight hunundreds dollars here, but this is off note. It is an all time record high. Yet again, a fresh record for the safe haven here.

Gold and Focused a just shy of twenty eight hunundreds dollars here, but this is off note. It is an all time record high. Yet again, a fresh record for the safe haven here.

And how long can the gold rally last and will a new president in the White House change its course. That's after the break. Gold prices reached a record high of about two thousand, seven hundred and ninety dollars per ounce last October. Analysts say central bank buying is what's been driving gold prices up. Here's Samantha Dart, co head of Global Commodities Research at Goldman Sachs.

And how long can the gold rally last and will a new president in the White House change its course. That's after the break. Gold prices reached a record high of about two thousand, seven hundred and ninety dollars per ounce last October. Analysts say central bank buying is what's been driving gold prices up. Here's Samantha Dart, co head of Global Commodities Research at Goldman Sachs.

It's been the dominant driver of the upward gold moved since twenty two. The moment that Russian financial assets were blocked, then that sparks a lot of concern from a lot of emergin markets, and in particular that who knows this might happen to them one day. So central bank buying has stepped up significantly fivefold from the average that we observed prior to twenty twenty two.

It's been the dominant driver of the upward gold moved since twenty two. The moment that Russian financial assets were blocked, then that sparks a lot of concern from a lot of emergin markets, and in particular that who knows this might happen to them one day. So central bank buying has stepped up significantly fivefold from the average that we observed prior to twenty twenty two.

And Bloomberg's changing Lee says China's central bank has been front and center of the gold rally.

And Bloomberg's changing Lee says China's central bank has been front and center of the gold rally.

The People's Bank of China went on gold buying spree for eighteen three months in twenty twenty three that ended in a pro last year. This was its longest ever run of purchases. It was looking to diversify its reserves away from the dollar and hedge against currency depreciation, and after a half year break, in November, shortly after the gold reached its historical high, the Chinese Central Bank actually resumed its gold buying, so we can see how caen they are on buying the precious medal even as gold prices remained elevated.

The People's Bank of China went on gold buying spree for eighteen three months in twenty twenty three that ended in a pro last year. This was its longest ever run of purchases. It was looking to diversify its reserves away from the dollar and hedge against currency depreciation, and after a half year break, in November, shortly after the gold reached its historical high, the Chinese Central Bank actually resumed its gold buying, so we can see how caen they are on buying the precious medal even as gold prices remained elevated.

Besides China's central Bank, there have been other factors driving gold prices.

Besides China's central Bank, there have been other factors driving gold prices.

Up last year. The gains in gold were also helped by the US Federal reserves pivot to a loser monitored policy, and when FED was in a rate cutting cycle, so when the interest rate comes down, demand for interest based safe haven investments like bonds may fall, leaving a safe haven void in many portfolios. This helps boost the demand for gold, but looking ahead, gold may face some pressure as FED officials have emphasized the need to take a more cautious approach to cut RAAIG this year because they're starting to again worry about inflation.

Up last year. The gains in gold were also helped by the US Federal reserves pivot to a loser monitored policy, and when FED was in a rate cutting cycle, so when the interest rate comes down, demand for interest based safe haven investments like bonds may fall, leaving a safe haven void in many portfolios. This helps boost the demand for gold, but looking ahead, gold may face some pressure as FED officials have emphasized the need to take a more cautious approach to cut RAAIG this year because they're starting to again worry about inflation.

Gold prices in January have eased since October's record, but they remained some thirty percent higher year on year, and ongoing global turmoil from unrest in the Middle East to political chaos in South Korea is expected to sustain the demand for gold.

Gold prices in January have eased since October's record, but they remained some thirty percent higher year on year, and ongoing global turmoil from unrest in the Middle East to political chaos in South Korea is expected to sustain the demand for gold.

So when politics get messy, gold gets popular.

So when politics get messy, gold gets popular.

I always say tariffs is the most beautiful word.

I always say tariffs is the most beautiful word.

To me in the dictionary.

To me in the dictionary.

And because tariffs gonna make as rich as hell, it's going to break our countries. Business is back.

And because tariffs gonna make as rich as hell, it's going to break our countries. Business is back.

Tensions from a potential trade war between US and China or with the US's other top trading partners could drive gold prices and demand for the safe haven asset, and traders are also watching out for what implications US President Donald Trump's domestic policies would have, such as on tariffs, tax cuts, and immigration. All of these economists say could impact the country's finances and re ignite inflation.

Tensions from a potential trade war between US and China or with the US's other top trading partners could drive gold prices and demand for the safe haven asset, and traders are also watching out for what implications US President Donald Trump's domestic policies would have, such as on tariffs, tax cuts, and immigration. All of these economists say could impact the country's finances and re ignite inflation.

So changing it's a pretty complicated picture when it comes to gold, but that doesn't appear to have lessened its appeal to Chinese buyers. What's your sense on how long this gold mania might last?

So changing it's a pretty complicated picture when it comes to gold, but that doesn't appear to have lessened its appeal to Chinese buyers. What's your sense on how long this gold mania might last?

Annaly say the market our looker remains strong because gold is a symbol of wealth and prosperity, and people always buy jury as gifts for festivals and these. There are also analysts saying that consumers often delay or cut back on gold purchases when prices rise sharply, so there might be a little volatilities out there, but this will not change the fundamentals of gold consumption in China, which is which is people like gold and will buy it.

Annaly say the market our looker remains strong because gold is a symbol of wealth and prosperity, and people always buy jury as gifts for festivals and these. There are also analysts saying that consumers often delay or cut back on gold purchases when prices rise sharply, so there might be a little volatilities out there, but this will not change the fundamentals of gold consumption in China, which is which is people like gold and will buy it.

This is The Big Take Asia from Bloomberg News. I'm wan ha and a happy Lunar New Year to all of you who celebrated. This episode was produced by Young Young, Naomi and Jessica Beck. It was mixed by Omer Sultan, sound designed by Jessica, and fact checked by Young and Naomi. It was edited by Caitlin Kenny, Patty Hirsch, Jessica Joe, and Sybylla Gross. There was additional reporting by Alfred Sound. Naomi Shaven is our senior producer, Elizabeth Ponzo is our senior editor, Nicole Beemster Bower is our executive producer, and Sage Bauman is Bloomberg's head of Podcasts. Please follow and review The Big Take Asia wherever you listen to podcasts. It really helps new listeners find the show. See you next time.

This is The Big Take Asia from Bloomberg News. I'm wan ha and a happy Lunar New Year to all of you who celebrated. This episode was produced by Young Young, Naomi and Jessica Beck. It was mixed by Omer Sultan, sound designed by Jessica, and fact checked by Young and Naomi. It was edited by Caitlin Kenny, Patty Hirsch, Jessica Joe, and Sybylla Gross. There was additional reporting by Alfred Sound. Naomi Shaven is our senior producer, Elizabeth Ponzo is our senior editor, Nicole Beemster Bower is our executive producer, and Sage Bauman is Bloomberg's head of Podcasts. Please follow and review The Big Take Asia wherever you listen to podcasts. It really helps new listeners find the show. See you next time.