In 2003, gold price was only 74.5 yuan - a 22-year story about the cost of a financial decision

In the early 21st century, as the economy skyrocketed, an ancient myth began to spread widely: “Gold is eternal assets, its value will always be protected.” This statement convinced many people, but it was also the most trusted individuals who paid the highest price.

When 300 million follows the myth “Gold Never Loses Value”

In 2003, the price of gold was only 74.5 yuan per gram—a very low figure compared to today. At that time, a Chinese woman decided to use her entire savings of 300 million yuan to buy 4,000 grams of gold bars. She didn’t make this decision alone—a bank employee confidently assured her: “Gold is a hard currency; its value far surpasses reinforced concrete.” This advice was repeated thousands of times, making the decision to buy gold seem reasonable at the time.

From 2003 to 2025, over 22 years, she confidently stored her gold bars for safety, paying an annual storage fee of 0.6%. The silence of those years led her to believe she had made the right choice.

The real numbers: 9.2% on paper, losses in life

By spring 2025, as her son prepared to start a family and she needed money for a house deposit, she decided to sell her gold. The buyback price from gold dealers like Chu Daisun was 688 yuan per gram—a price nearly 10 times higher than gold in 2003. The initial calculation looked very promising: 4,000 grams times 688 equals 2.752 billion yuan. On paper, she earned 2.452 million yuan, equivalent to an annual return of 9.2%.

But this number was only an illusion.

Storage fees—moth-eaten from silence

The first step to disillusionment was paying a total of 48,000 yuan in storage fees over 22 years. This number doesn’t seem large, but it’s only the tip of the iceberg. In fact, this amount results from compounding 0.6% annually over 22 years, accounting for about 2% of the total nominal profit. When considering opportunity costs—the interest she could have earned if she had deposited the money in a bank instead of storing gold—the loss doubles or triples.

Inflation—the invisible knife that kills without blood

But the greatest challenge wasn’t the storage fees; it was something more intangible—inflation. Over the past 22 years, the overall price level of the economy tripled. This means the real purchasing power of 2.752 billion yuan in 2025 is only equivalent to about 820,000 yuan in 2003. In other words, she lost 80% of her real purchasing power.

For example, in the past, a five-cent note could buy a fragrant butter ice cream. Now, even a small sugar water ice cream costs eight yuan. This change is the most visible sign of inflation, but it also proves that currency has depreciated in a way that ordinary people can feel.

The road not taken: if 300 million bought real estate in Beijing

To better understand her loss, look at the parallel path she didn’t take. In 2003, gold prices were still low, but real estate prices in Beijing’s Third Ring Road were also low—around 3,000 yuan per square meter. If she had used that 300 million to buy 100,000 m² of real estate (an extreme assumption), its value today would be 15 billion yuan. Even buying a small 100 m² apartment, its value would have increased from 300,000 to nearly 15 million—50 times growth, instead of an 80% decrease like in the gold case.

Ms. Wang, her neighbor, was luckier. In 2003, she used the same 300 million to buy Tencent stocks instead of gold. Today, her stock account has nine digits—a number that left the elderly woman speechless.

The final lesson: hide gold during war, hide chips during peace

All of the above contain a profound lesson about the nature of asset accumulation. Gold is certainly a valuable talisman during war and chaos. But in peacetime, when the economy develops rapidly, gold becomes a “speed limiter” for the growth of wealth among its holders.

The myth “Gold Never Loses Value” is true—it indeed preserves nominal value. But it depreciates in a different way—losing purchasing power in an ever-changing world. That’s why wealthy tribes in the Middle East shifted from hoarding gold to investing in oil and technology. And that’s also why an old saying still persists: “Hide gold in times of chaos, hide chips in times of prosperity.”

The story of the elderly woman is just one among millions of examples of how time, inflation, and poor financial decisions can gradually erode a person’s assets. 22 years—long enough for someone to go through their entire youth, enough for Hong Kong and Macau to unify twice—also enough time to realize they have gone too far in the wrong direction.