These banks have sold out of some gold products intended for retail investors in China, as the recent surge in gold prices has led investors to reconsider gold as a hedge against potential macroeconomic instability, including a potential trade war.
Banks Run Out of Gold in China As Retail Investors Seek Cover From Macro Conditions
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Banks Sold Out of Gold as Retail Investors’ Demand Rises in China
Gold is shining again in China as a tool for investors to protect themselves from current market instability. According to Yicai, some Chinese banks have faced a shortage of their most accessible gold products, primarily intended for retail investors.
For example, the Industrial and Commercial Bank of China has run out of its Ruyi bars in 5g, 20g, 50g, 100g, and 200g sizes, with only the 10g bar available in limited quantities.
Similarly, other banks are facing difficulties in maintaining stock levels due to rising demand. The Agricultural Bank of China, which offers these gold products in various retail-friendly sizes, has run out of its 10g and 20g Chuan Shi Zhi Bao gold bars, while the more expensive 100g and 200g bars are reported to have tight inventory.
The China Construction Bank only has 50g and 100g bars available, its most expensive options, while the Postal Savings Bank of China and Bank of China offer their gold options only for preorder.
Retail gold stores have also been affected by the rising demand, and one store told Yicai that their 100g bars sold out before the Chinese New Year, leaving only smaller options available.
This situation is notable, as gold prices have risen recently due to its ‘safe haven’ status, as the Trump administration advances a reciprocal tariff policy aimed at taxing all countries that impose tariffs on U.S. products.
The World Gold Council believes that gold will react favorably to a geopolitical and economic turmoil scenario. Louise Street, a senior markets analyst at the World Gold Council, recently stressed that these themes should be prevalent this year, “supporting demand for gold as a store of wealth and hedge against risk.”
Read more: World Gold Council: Central Banks, Investors Drive Gold Demand to All-Time High
