POP QUIZ: Guess The #1 Thing That The Chinese Like To Invest In

gold necklace display

Photo: Mamta Badkar

China is the world’s second largest gold consumer and gold-bar investment demand is expected to rise to over 270 tons in 2011, nearly twice as much as last year.But who’s actually buying the gold?

A survey from Credit Suisse shows that 32% of respondents would choose to buy gold , compared with 19% who would invest in the stock market and 13% in property.

But the survey showed that there are significant differences among the type of people who invest in gold compared with the stock market.

A Chinese person who lived in a tier- 2 city and was part of the lower-income bracket would most likely invest in gold, while someone from a higher-income group and lived in a tier-2 city would be most likely to invest in stocks.

An overwhelming 47% of people in higher-income group said they would invest in gold, compared with 32% from the middle-income group and 24% from the higher-income group.

When broken down by tier of cities, 37% of respondents from tier-2 cities said they would invest in gold, compared with 35% in tier-1 cities and 23% in tier-3 cities.

Now here’s a chart from Credit Suisse that shows what investments Chinese prefer when broken-down by income group:

gold investment by age bracket

Photo: Credit Suisse

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