10-year-old girl invests in gold with festival gift money to stop parents from spending her lucky money

Girl invests gift money in gold instead of spending it. (Photo credit: Reuters)

• 10-year-old girl invests Lunar New Year money in gold since 2023
• Her gold investment grew as prices surged over the past year
• She has collected 30 grams of gold and plans to keep investing

Did our AI summary help?

A 10-year-old girl from northern China has drawn attention after investing her Lunar New Year gift money in gold three years ago, a decision that has since delivered strong returns amid rising prices.

Hailing from Langfang, Hebei province, the child began investing in gold in 2023. According to the South China Morning Post, she used the cash gifts traditionally given to children during the Lunar New Year, choosing to invest rather than spend the money.

In China, adults traditionally give children and unmarried family members money in red envelopes during the Lunar New Year. The custom is believed to bring good luck and good health for the coming years.

Her mother, Bai, said the child decided to buy gold because she feared her parents might spend it. She believed gold would be easier to protect than cash.

According to Bai, her daughter receives about 4,000 yuan (nearly US$580) each year.

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

Bai revealed her daughter has collected around 30 grams of gold so far. She has not sold any of it and intends to continue investing.

Sharp rise in gold rates 

Over the past year, China have seen a steep surge in gold rates. Reports suggest they rose by about 20% last year, followed by another 30% increase in the first month of this year.

According to the South China Morning Post, the sharp rise in gold prices has been attributed to global geopolitical tensions, tariff warnings by former US president Donald Trump, and increased buying by central banks.