Gold is sold in China while ‘aunts’ buy bullion
Wearing a thick coat to ward off the autumn chill while standing in front of Beijing’s busiest jewelry store, Yang Cuiyan, a 41-year-old housekeeper from Anhui Province, fastens a gold necklace for which he paid 10,000 yuan ( $ 1,640), or five months. ” wages. She is another reason that China is poised to topple India as the world’s top consumer of gold, even as investors from 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 wear it when I get home to show everyone that I’m doing well.”
Buy gold bars:
Yang traveled 650 miles from his rural home (1,000 kilometers) to the Chinese capital to shop and visit a relative. Ms. Yang is one of the growing legions of middle-aged Chinese women, respectfully called ‘aunts’, who bought gold jewelry and gold coins this year 2013, adding support to the gold market while being shunned by many investors. professionals who began to defect. metal as a store of value in early 2013.
The second largest economy in the world is gold bars! Bullion consumption in 2013 rose 29 percent to a record 1,000 metric tons, according to estimates from gold traders, analysts and producers in China surveyed by Bloomberg News.
That demand may decline as much as 2.4 percent in 2014 from this peak, pointing to larger purchases than any other nation and more than the United States, Europe and the Middle East “combined.”
Buy gold bullion: In the 12 months to September 2013, Chinese demand for gold jewelry, bars and coins increased 30 percent to 996.3 tons, while usage in India increased 24 percent to 977, 6 tons, almost “1,000 tons” each for only 12 months! Wow, that’s a huge record for one-year purchases according to the London-based World Gold Council. The number one country in gold purchases for the 2012 calendar 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. real estate, gold will continue to be a preferred option. “
Another “gold booster” 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 appreciated there. India and China are the same on this issue, which is another “driver” of demand for [more Gold].
Slam Dunk:
After 14 percent [drop] on gold prices in two days in April 2013, Chinese media images of ‘aunts’ cleaning shelves in gold stores illustrate a demand for gold bars 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 has no appeal to him, and Goldman Sachs Group Inc.’s head of commodities research Jeffrey Currie, who correctly forecast this year’s decline, on 8 October called it a “slam dunk” sell for 2014.
Gold price forecasts:
Bullion is 34 percent below the record set in 2011 and is on track for its first [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 from the end of December 2013 and the Bloomberg US Treasury Bond Index [lost] 2.1 percent. While the MSCI All-Country World Stock Index rose 18 percent over the same period, the Shanghai Composite Index fell 3.4 percent.
Based on the median of estimates from 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 increased 9.5 percent, China’s rural per capita cash income in the first nine months increased 12.5 percent from the previous year, the National Bureau of Statistics shows. The Chinese economy grew 7.6 percent this year, 2013, and is forecast to grow 7.4 percent in 2014, according to median estimates compiled by Bloomberg.
Globally, China ranks fourth among people with $ 1 million or more in investable assets, after its number of high-net-worth individuals in the country rose 14 percent to 643,000 in 2013, according to a report by Cap Gemini SA and Royal Bank of Canada. The United States ranks first in terms of the most millionaires, followed by Japan and Germany.