Gold Slam-Dunk Sale In China As An Aunt Buy Bars

Wearing a thick coat to protect herself from the autumn cold while standing in front of Beijing’s busiest jewelry store, Yang Kuiyang, a 41-year-old housekeeper from Anhui Province, fastens a gold necklace for which she paid 10,000 yuan ($ 1,640). or a five-month salary. It is another reason for China to be ready to bring down India as the world’s largest consumer of gold, even as investors around the world desert the yellow metal.

“I don’t know anything about the stock market and I don’t have enough money to buy real estate, so I decided that gold was the safest choice,” she said. “I can wear it when I get home to show everyone I’m doing well.”

Buy gold bars:

Yang travels 650 miles from his country house (1,000 kilometers) to the Chinese capital to shop and visit relatives. 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 professional investors. , which began to desert the metal as a stock of value in early 2013.

The second largest economy in the world is the gold bars! Consumption of bullion in 2013 increased by 29% to a record 1,000 metric tons, according to estimates of traders, analysts and gold producers in China, studied by Bloomberg News.

This demand could ease 2.4% in 2014 from this peak, pointing to purchases larger than any other country and more than the US, Europe and the Middle East “taken together”.

Buy gold bars: In the 12 months to September 2013, demand in China for gold jewelry, bars and coins increased by 30 percent to 996.3 tons, while use in India increased by 24 percent to 977.6 tons, almost “1000 tons” in just 12 months! Wow, this is a colossal record for one-year purchases according to the London-based World Gold Council. Country number 1 for gold purchases for the 2012 calendar was again India.

“In China, you look around and see very few places to invest your money,” said Duan Shihua, a partner at Shanghai Leading Investment Management Co. “With the shrinking stock market and the government pushing people away from real estate, gold will remain the preferred choice. “

Another “engine of gold” are Gold-Laden Brides in India. “Every day” in India there are thousands of brides who get married and the traditional public etiquette is to give away “gold jewelry” because they are so highly valued there. India and China are similar in this number, which is another “engine” in demand [more Gold].

Drives:

After 14 percent [drop] in gold prices for two days in April 2013, images in the Chinese media of clearing shelves of “aunts” in gold stores illustrate the demand for gold bars, which contradicts the views of the largest banks in the West and highlights the limited choice of investment in China. The world’s most successful investor, Warren Buffett, said he did not like the metal, and the head of Goldman Sachs Group Inc. for goods research Jeffrey Curry, who correctly predicted the route this year, on October 8 called it a “helmet” “sell for 2014.

Gold price forecasts:

The slip is 34 percent below the record set in 2011 and is underway for its first annual [loss] since 2000, after falling 24% this year to $ 1,276.64 an ounce in London. GSCI gauge of Standard & Poor’s of 24 products [fell] 5 percent since the end of December 2013 and the Bloomberg government securities index in the United States [lost] 2.1 percent. While the MSCI All-Country World Stock Index rose 18% over the same period, the Shanghai Composite Index fell 3.4%.

According to the median estimates of the 10 most accurate precious metal analyzers tracked by Bloomberg in a study published last month, Bullion will average $ 1,175 in the third quarter of next year. Prices were last at this level in 2010. Goldman expects prices from 1050 dollars by the end of 2014.

While the disposable income of the urban population increased by 9.5%, China’s per capita monetary income in the first nine months jumped by 12.5% ​​compared to a year earlier, according to the National Bureau of Statistics. The Chinese economy grew by 7.6% this 2013 and is projected to grow by 7.4% in 2014, according to the median of estimates compiled by Bloomberg.

Globally, China ranks fourth among people with $ 1 million or more in investment assets, after the number of people with high net worth in the country increased by 14% to 643,000 in 2013, according to a report by Cap Gemini SA and Royal Bank of Canada. The United States is the number one millionaire, followed by Japan and Germany.