Gold buying frenzy grips China
By David Lew
BEIJING: The Chinese people are increasingly getting entangled in the luster for gold. The Chinese families are on a buying spree of gold ornaments, gold bars, gold coins and gold ETFs. But they are not alone. Chinese mining companies, bullion dealers, gold associations, jewelers and traders are all in the grip of the 'yellow' fever with one aim: buy and trade gold. China, indeed, is in the grip of a gold buying frenzy.
In fact, everything about gold is booming across China. 2009 was a test case for China as far as gold trading was concerned. China is today the largest producer of gold in the world. China is all set to overtake India as the largest consumer of the yellow metal. China is also set to outshine several other countries including India and the Middle East to become the largest trading ground for gold in the world.
A gold buying frenzy is spreading across the Chinese landscape--from cities to rural towns--as you can make out from the words of Xiam Zang, a bullion dealer in Beijing: “Chinese people are buying more gold these days. There are increased sales in jewellery shops for gold ornaments, coins and bars. In fact, many people are now convinced that gold is the best investment asset.”
Zang says as gold sales are rising, “there are increased requests from jewellery shops for supplying them with gold.” “Everyone is doing good business in gold in China. The gold buying spree is not just limited to Beijing or big cities. Even in rural areas, people are simply buying gold despite the high prices,” he added.
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