Why is the same gold more expensive in China than in the US?

I was stunned at the time. This is the first time in 16 years I've seen such a situation.

Usually, global gold prices are almost synchronized, with the price difference not exceeding a few dollars. But now, the gap between gold prices in China and the US is clearly widening, and China’s gold is more expensive.

There seems to be a bigger secret behind this.

When Paper Gold Meets Real Gold
On the US side, gold trading mainly relies on futures and paper contracts. In simple terms, it’s a digital game; most people are buying "promises of gold," not real gold.

In China, it’s different. The Shanghai Gold Exchange focuses more on physical delivery. When you buy, you really get the gold in hand.

As a result, when prices fall, US paper gold can be easily dumped since it’s just digital. But Chinese physical gold has real demand supporting it, making the price more resilient.

It’s like housing prices: speculators can push the price of pre-sale apartments sky-high, but those who truly need to live there will only buy ready homes.

What Are the Institutions Quietly Doing?
Even more interesting, while US stocks are falling, the US dollar index is rising.

This combination usually indicates one thing: big funds are reducing their stock holdings and increasing cash positions.

After Trump nominated Kevin Woorh as Federal Reserve Chair, short-term US bonds were snapped up, while long-term bonds were sold off. The market is voting with its feet and isn’t optimistic about this choice.

Smart money has already started moving. They know things we don’t.

Real Danger Signals
When the China-US gold price gap widens, it actually reflects different risk perceptions in the two markets.

Chinese investors are buying real gold, while American investors are playing with paper contracts. Who is more rational?

History tells us that every time this kind of divergence occurs, it signals that a bigger change is coming. Similar abnormal price differences appeared before the 2008 financial crisis.

The question now is: what will this time be?

The Most Heartbreaking Truth
Most people think they are investing in gold, but in reality, they are just gambling.

True gold investors focus on physical supply and demand, pay attention to the China-US price gap, and study delivery data.

Most retail investors only watch candlestick charts, dreaming of getting rich overnight.

When the tide recedes, you’ll see who was truly swimming naked. Now, it seems the tide has already begun to go out.

Are you holding real gold, or just a promise?