10-year-old in China invests in gold with festival gift money to keep parents from spending it

A 10-year-old girl in northern China has attracted widespread attention after using her Lunar New Year gift money to buy gold three years ago. Her decision has proven highly profitable as gold prices have soared.The child, from Langfang in Hebei province, began purchasing gold in 2023. ((Representational image, AI generated))The child, from Langfang in Hebei province, began purchasing gold in 2023. She used the cash gifts traditionally given to children during the Lunar New Year, choosing to invest rather than spend the money, according to a report South China Morning Post (SCMP).Also read| China charges former AstraZeneca regional head Leon Wang a year after detaining him. Here’s whyIn China, it is customary for adults to present children and unmarried relatives with money in red envelopes during the Lunar New Year celebrations. The gesture symbolises good luck and good health for the year ahead.Fear of spending led to investmentAccording to her mother, Bai, the girl decided to invest her gift money because she was worried her parents might spend it. She believed gold would be easier to safeguard than cash.Bai said her daughter receives about 4,000 yuan (around US$580) each year in gift money.When the girl made her first purchase, gold was priced at about 460 yuan (US$66) per gram. February this year, the price had climbed sharply to 1,100 yuan per gram.Bai mentioned that her daughter has accumulated around 30 grams of gold so far. She has not sold any of it and intends to continue buying more.Gold prices surgeGold prices in China have risen steeply over the past year. Reportedly, the prices increased roughly 60 per cent last year, followed a further jump of nearly 30 per cent in the first month of this year.The price surge has been linked the rise to geopolitical tensions, tariff threats from former US president Donald Trump, and increased gold purchases central banks, the report SCMP further mentioned.