"Buying One-Third of the World’s Gold" Chinese "Dama" Fuel Frenzy in Gold and Silver Investments

Chinese investors bought 432 tons of gold bars and coins last year
Driven by property slump, stock market jitters, and low interest rates
Even Generation Z is flocking to gold as a safe-haven asset

The Wall Street Journal (WSJ) reported on the 8th (local time) that behind the recent surge in gold and silver prices are Chinese retail investors known as "Dama" (middle-aged aunties), the local equivalent of affluent housewives.

According to the World Gold Council, Chinese investors purchased around 432 tons of gold bars, gold coins, and similar products last year. This represents a 28% increase from the previous year and accounts for about one-third of global gold purchases in 2025. Inflows into Chinese gold ETFs hit an all-time high last year, and trading volume of gold futures on the Shanghai Futures Exchange also reached a new annual record. Some investors are hoarding physical gold ranging from gold bars to 1-gram gold beans.

A shop employee is arranging gold accessories in Huzhou, Zhejiang Province, China. Photo by Xinhua News Agency

At the beginning of this year, as the rally in metal prices gained momentum, global investors flocked to precious metals such as gold. Chinese individual investors are buying gold because they see no attractive alternatives. The real estate slump has become prolonged, the Chinese stock market is highly volatile, and bank interest rates are low. As a result, not only "Dama" but also members of Generation Z (those born from the late 1990s to the early 2010s) are turning their attention to gold as a safe asset.

Rose Tian, a 43-year-old high school teacher, has purchased thousands of dollars’ worth of gold over the past few years. She said that despite the recent increase in volatility, she still considers gold the best way to protect her wealth, adding, “I am optimistic about gold prices because I believe gold is an excellent safe-haven asset.” Jia Fei, a woman in her 30s from Henan Province, bought 50 grams of gold and sold it last summer when the price doubled. Now she believes gold prices are too high and is investing in silver instead.

The WSJ noted that gold and silver in China are trading at a premium to international benchmark prices, explaining that this is a sign of rising demand. Hammad Hussein, climate and commodities economist at Capital Economics, said, “It is now getting closer to a speculative frenzy.”

Some Chinese banks are tightening lending conditions in an effort to cool the investment fever. Gold prices have also plunged recently. On January 30, when U.S. President Donald Trump nominated former Federal Reserve (Fed) Governor Kevin Warsh as the next Fed Chair, the dollar strengthened and metal prices recorded their largest one-day drop in decades. However, Hong Miao, who works at the Tianya Jewelry Market in Beijing, told the WSJ, “The recent price correction has brought more customers back to the market.”