A 10-year-old girl from northern China drew attention three years ago after investing the money from her lunar New Year gift into gold. This decision has been yielding substantial profits amid rising prices.

Ling Fang, from Hebei Province, began investing in gold in 2023. According to the South China Morning Post, she used traditional cash gifts given to children during the lunar New Year, choosing to invest the money rather than spend it.

In China, adults traditionally give red envelopes containing money to children and unmarried family members during the new lunar year. It is believed that this custom brings good luck and good health for the coming year.

Her mother, Bai, said that her daughter decided to buy gold because she was worried her parents might spend the money. She thought that gold would be easier to safeguard than cash.

According to Bai, her daughter receives about 4,000 yuan, approximately 580 US dollars, each year.

At the time of her first purchase, the price of gold was about 460 yuan, or US$66, per gram. By February of this year, it had risen to 1,100 yuan per gram.

Bai revealed that her daughter has now accumulated about 30 grams of gold. She has not sold any of it and plans to continue her investment.

Stunning Rise in Gold Prices

Over the past year, gold prices in China have experienced a remarkable increase. Reports indicate that they rose by about 20% last year, followed by an additional 30% in the first month of this year.

According to the South China Morning Post, the sharp increase in gold prices is attributed to global geopolitical tensions, former US President Donald Trump’s tariff warnings, and increased central bank purchases.