Wednesday, April 24, 2019

China citizens buying gold

Why the Chinese are rushing to buy gold with hard cash?

According to CCTV, sales of gold for the May Day holiday in Beijing are up 70% over last year, and that sales of gold bars has doubled. There are a few reasons, one being the property restriction and the other is the Euro crisis.

Chinese TV has been giving extensive coverage to the rush of Chinese investors buying physical bars of gold and the Chinese are now the biggest gold purchasers in the world. If savvy Chinese investors sense their economy is slowing down, it probably is.

Because of the new property regulation, housing speculators from southeastern China are switching their money from property into gold following government restrictions on the real estate market  Tao Xingyi, president of Beijing-based Jinding Group, a company specializing in high-end gold trading and investment, said the company’s customers have increased by 300 — 400 percent recently. Tao Xingyi commented that within afew weeks, there were three groups of Wenzhou investors making purchases of physical gold from his company worth more than 10 million yuan.

Another reason is the Renminbi, China’s currency, which has been pushed up to record highs against the Euro due to the Eurozone crisis. Chinese goods are not that cheap any more, and exports are likely to slow dow