As the demand for gold skyrocketed, numerous Chinese investors, including 28-year-old Julie Li, have committed their savings to the precious metal, drawn by the allure of rising prices. Li invested $35,000 in gold bars through Yongkun Gold, an online platform with numerous jewelry stores across eastern China. Encouraged by the company's promises of high returns, she later added another $20,000 to her investment.
However, instead of receiving her anticipated payouts, Li and many other investors were met with panic when Yongkun Gold abruptly halted all withdrawals and closed its stores. With its headquarters in Hangzhou non-responsive, Li expressed her despair, stating, “That’s all my savings. The salesperson kept telling me that gold prices will keep rising.”
The investment activity of individuals like Li has significantly driven up gold prices, with Chinese investors purchasing around 124 metric tons of gold bars and coins in just the first quarter of the year, amounting to a 12 percent increase from 2024. The escalating investment patterns paint a picture of a booming market that raises alarms for Chinese officials.
Given the stakes involved, the local police have initiated a criminal investigation into Yongkun Gold, revealing underlying concerns about potential social upheavals resulting from such financial troubles. As investigations continue, many investors await clarity in a deeply fraught situation.
