Gold is a sensational sale in China as ‘aunts’ buy bullion
Yang Cuiyan, a 41-year-old housekeeper from Anhui province, wearing a thick coat to ward off the autumn chill and standing outside Beijing’s busiest jewelry store, clutches a gold necklace for which she paid 10,000 yuan ($1,640), or five months’ salary. . She is another reason why China is poised to topple India as the world’s top gold consumer, even as investors around the world ditch the yellow metal.
“I don’t know anything about the stock market and I don’t have enough money to buy a property, so I thought gold is the safest option,” he said. “I can put it on when I get home to show everyone that I’m doing it right.”
Buy gold bars:
Yang traveled 650 miles (1,000 kilometers) from her rural home to the Chinese capital to go shopping and visit relatives. Ms. yang is one of the growing legions of middle-aged Chinese women, respectfully called ‘aunties’, who bought gold jewelry and gold coins this year, 2013, adding support to the gold market while shunned by many professional investors and they started to drop out. metal as a store of value in early 2013.
The second largest economy in the world is gold bullion! Bullion consumption in 2013 rose 29 percent to a record 1,000 metric tons, according to estimates from Chinese gold dealers, analysts and producers surveyed by Bloomberg News.
That demand may decline 2.4 percent in 2014 from this peak, pointing to larger purchases than any other nation and more than the US, Europe and the Middle East “combined.”
Buy gold bars: In the 12 months to September 2013, China’s demand for gold jewelry, bars and coins increased 30 percent to 996.3 tons, while use in India increased 24 percent to 977 .6 tons, almost “1000 tons” each for only 12 months! Wow, that’s a massive record for buys in a year according to the London-based World Gold Council. The number 1 gold buying country for calendar 2012 was India once again.
“In China, you look around and see very few places to put your money,” said Duan Shihua, a partner at Shanghai Leading Investment Management Co. “With the stock market down and the government turning people away from real roots, gold will remain a favored choice.
Another “Gold Conductor” is the Gold Laden Brides in India. ‘Every day’ in India, there are thousands of brides getting married and it is traditional social etiquette to give ‘gold jewelry’ as a gift as it is highly prized there. India and China are similar on this issue, which is another “driver” under the request of [more Gold].
Slam Dunks:
After 14 percent [drop] in gold prices in two days In April 2013, images in the Chinese media of ‘aunts’ clearing shelves in gold shops illustrate a demand for gold bullion that challenges the views of the largest banks in the West and underscores the Limited investment options in China. . The world’s most successful investor, Warren Buffett, said the metal does not appeal to him, and Goldman Sachs Group Inc. head of commodities research Jeffrey Currie, who correctly forecast this year’s decline, on Oct. 8 called it a “coup”. Selling for 2014.
Gold Price Forecast:
Bullion is 34 percent below the record set in 2011 and on track for its first year [loss] since 2000 after falling 24 percent to $1,276.64 an ounce in London this year. Standard & Poor’s GSCI indicator of 24 commodities [fell] 5 percent since the end of December 2013 and the Bloomberg US Treasury Index [lost] 2.1 percent. While the MSCI All-Country World Index of stocks rose 18 percent over the same period, the Shanghai Composite Index fell 3.4 percent.
According to the median of the estimates of the 10 most accurate precious metals analysts tracked by Bloomberg in a survey published last month, Bullion will average $1,175 in the third quarter of next year. Prices were last at that level in 2010. Goldman expects prices of $1,050 by the end of 2014.
While urban per capita disposable income rose 9.5 percent, China’s rural per capita cash income in the first nine months rose 12.5 percent from a year earlier, the National Bureau of Statistics shows. China’s economy grew 7.6 percent this year in 2013 and is forecast to grow 7.4 percent in 2014, according to the median estimate compiled by Bloomberg.
Globally, China ranks fourth among people with $1 million or more in investable assets, after the number of high net worth individuals in the country rose 14 percent to 643,000 in 2013, according to a report from Cap Gemini SA and Royal Bank of Canada. . The United States ranks first with the most millionaires, followed by Japan and Germany.
