Gold Bean Savings: A Bit of a Loss

“Savings is like investing” became a slogan for many gold merchants, but the price gap between buying and selling gold beans is significant, making it almost impossible to make a profit.

“It's hard to sell at the right time,” said consumer Zhang, lamenting the current gold bean savings trend. “In 2022, I bought four or five gold beans from offline brand stores for an average of 460 yuan per kilogram (1 kg). After nearly a year, I sold them back at the price of around 419 yuan per kilogram, still losing money.”

On March 30th, a reporter from Beijing Commercial News visited several gold stores and found that the current offline prices have risen to over 500 yuan per kilogram, but the selling price is still lower than the buying price. For example, on that day, the selling price of gold beans at Jinqiao was 508 yuan per kilogram, while the buying price was around 419 yuan per kilogram, resulting in a loss of 89 yuan.

If consumers bought gold beans recently, the difference would be even more apparent. For example, on March 30th, the selling price of gold beans at Meitu was 540 yuan per kilogram, while the buying price was around 435 yuan per kilogram, resulting in a loss of 105 yuan.

Shanghai Gold Exchange's gold prices on March 30th were around 437 yuan per kilogram. Gold industry insiders told Beijing Commercial News that the selling price is generally based on international gold prices with a deduction of around 10 yuan, but some brands may have lower selling prices.

Another consumer, Li, who started buying gold beans in 2021, said, “Buying gold beans from physical stores is like being a ‘big fool’.” He only buys gold beans through coupons or platform discounts and only finds it worthwhile to buy at prices close to the market price.

The service provided by offline gold stores is also an important reason why consumers are willing to pay more. Zhang, who bought gold beans from Jinqiao, said that when she wanted to exchange her gold beans for jewelry, the store told her it was no longer possible.

Jinqiao's customer service explained that they stopped supporting the exchange of gold beans for jewelry in November 2022. Before that, they did support exchanges. Now, the company only accepts returns at the selling price. On March 29th, the return price was 420 yuan per kilogram.

For consumers who cannot exchange their gold beans for jewelry, Jinqiao's customer service suggested waiting and seeing if there will be any changes in the company's policies in the future. A reporter from Beijing Commercial News then sent an interview outline to Jinqiao's brand team, but as of the deadline, there was no response.

Although saving gold beans is not a easy way to achieve investment, it can still reflect young people's demand for gold consumption. According to the “2022 National Trend Jewelry Research Report,” China's main consumers of gold products are concentrated in the age group of 25-34 years old, accounting for 55%, which is the first.

Lu Chao, general manager of Guangzhou Tongsin Investment Consulting Co., Ltd. and a professional gold investment analyst, said that buying gold beans is also a form of buying gold, allowing more consumers to participate. In general, investment bars can cost tens of thousands of yuan, which is difficult for young consumers to afford. Small gold beads meet the consumption needs of young people and are more suitable for ritual purposes.

He added that while buying gold beans is a new form of consumption behavior, it is not a scientific investment strategy. The current market for physical gold sales has limited channels for returns, with some institutions only selling but not returning. In his view, “Buying gold beans is more inclined to be a new consumer behavior rather than a scientific investment strategy.”

Beijing Commercial News reporter 蔺雨葳