In brief
As gold prices soar, Chinese investors like Julie Li face a crisis after Yongkun Gold, a company promising high returns, suddenly halts withdrawals and shuts its stores, sparking concerns among officials.
As gold prices hit record highs, Julie Li believed she had made a wise choice investing her savings into the shiny metal. Like her, many Chinese have flocked to gold, enchanted by promises of significant returns from companies like Yongkun Gold. Just last year, Li invested $35,000 in gold bars, later adding $20,000 more on credit. But when it was time for payouts, Yongkun Gold stopped all withdrawals and closed its doors, leaving thousands, including Li, in distress. "I'm devastated; that was my whole savings," said Li, a 28-year-old customer service agent from Sichuan Province. The surge in individual investments has driven gold prices to unprecedented levels, with Chinese buyers snapping up about 124 metric tons of gold bars and coins in the first quarter of the year alone. However, the situation has sparked alarm among Chinese officials. With the potential for unrest looming, local authorities have initiated a criminal probe into the actions of Yongkun Gold.
