Amid global risks, younger investors favour tangible bars as paper gold loses shine
Sussi Ye began buying gold bars in small batches at the start of the year, slowly building a hoard now worth about 200,000 yuan (US$29,700). Despite the metal’s price swings since then, she has not sold a single gram. “I prefer investing in physical gold instead of gold-linked financial products,” said the 32-year-old resident of Hangzhou, capital of eastern China’s Zhejiang province. “I like…
Younger investors are increasingly opting for physical gold bars over paper gold investments, driven by concerns over geopolitical tensions and market uncertainties. Sussi Ye, a 32-year-old resident of Hangzhou, China, has been accumulating gold bars since the beginning of the year, valuing her collection at around 200,000 yuan (US$29,700).
Ye prefers tangible gold over financial products linked to gold prices, citing its security and the potential for future use as wedding jewelry. This sentiment reflects a broader trend in global gold markets, with demand for physical gold among Gen Z growing. Yuvana Singh, a manager at IBV Gold London, notes that younger investors are more concerned about inflation, geopolitical tensions, volatile markets, and currency strength, leading them to diversify their portfolios at a young age and turn to gold.
Nearly a third of IBV Gold London's inquiries over the past year came from buyers aged 18 to 28, indicating that gold is no longer viewed solely as an investment for older or wealthy individuals. A World Gold Council survey in China found that gold jewellery ownership among consumers aged 18 to 24 surged to 62% from 37% five years ago.
Gold bar and coin demand reached 474 tonnes in the first quarter, a 42% increase year-on-year and the second-highest quarterly total on record, driven by Asian buyers. IBV Gold London operates a single vault in London, serving a 20% customer base from Asia, including mainland China, Hong Kong, and Singapore. BullionVault, the world's largest online physical precious metals service for private investors, reported that first-time users aged 16 to 27 reached a record in 2025, matching that full-year total in the first half of 2026.
As of Thursday, spot gold was trading at about US$4,425 an ounce, down 21% from January's record intraday high of US$5,602. Deutsche Bank expects gold to reach US$4,700 per ounce by year-end, while Morgan Stanley predicts prices could rise to US$5,000 by 2027.
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