Money
Gold rush amid market fluctuations
By Wu Wencong (China Daily)
Updated: 2010-04-22 10:26
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 A salesman at Caibai shows gold products to customers. [Yuan Zhou / for China Daily] |
Beijing investors have come down with a severe case of gold fever, ever since the stock market was hit with recent fluctuations and in light of expectations of a falling property market.
At the capital's Caishikou department store (Caibai), the biggest gold and jewelry seller in the city, buyers' passion for gold was apparent.
Customers were crowded around the counters and all sales staff were busy as people looked for a safe investment for their extra yuan.
At counters selling necklaces and rings and at others displaying gold crafts and gold bars, employees were busy answering questions.
In contrast, nearby counters selling platinum and diamond jewelry were much quieter.
"Our gold bars were released just a few months ago but the demand from the market is so high that we don't have any stock right now," said a salesman surnamed Mu, who was selling gold bars specially designed for the Shanghai Expo.
Within 10 minutes, three customers had inquired about the availability of the Expo gold bars. All were told there was no guarantee when a new consignment would arrive.
A middleaged woman surnamed Wu, who was thinking about buying a different kind of gold bar that sells for 60,000 yuan, said the clamor for gold was understandable.
"Money is becoming less worthy now," she told METRO. "Compared with fund and stock investment, gold investment is much safer, easier and more stable."
Wu said gold is also simple to resell, should you need to free up capital.
"You can simply buy gold bars, keep them at home for a few years, sell them again and make money," she said, adding that she had tried real estate investment a few years ago.
"Of course, now that is much too expensive for me!" she said before hurrying off to buy the last two gold bars available.
A Caibai press officer surnamed Niu said the sales volume of gold has been increasing year-on-year.
"The growth rate during the first quarter was 40 percent," she said.
Niu said people liked the stability gold offers.
"Some customers say they just enjoy the surefooted feeling, watching and holding the gold," she said. "They like real objects that can be seen and reached in their investment."
She also said customers found it easier to cash-in their gold assets than other investments, such as real estate and bonds.
"In Caibai, you can sell the gold back to us and get the money at once if you make a reservation ahead of the day," Niu said.
"I think another factor accounting for the gold fever is Chinese people's historic regard for gold.
"The Chinese have a special fondness for gold over other precious metals, such as platinum. It has been our currency for a long time and it is in keeping with our aesthetic values."
