The surging demand may be the result of Chinese investors shifting their focus from real estate to gold. This is a snippet from CCTV’s report, which gives you a peek into what is starting to happen:If housing speculators end up rolling their gains into gold en masse, then the demand will get frenetic. Housing dropping would give the ones who already have done so a real brag, which would spread across the land. More evidence that gold is coming into its own.
“Housing speculators from Wenzhou City in 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% recently…
“Tao said that within one month, three groups of Wenzhou investors made purchases of gold from his company worth more than 10 million yuan (about $1.5 million).”
Wednesday, May 26, 2010
Chinese Gold Buyer Still Busy
According to a report from the Daily Reckoning, webbed by Before It's News, mainland Chinese gold buying is still going strong. The reporter, Chris Meyer, saw a busy gold market with his own eyes - and pointed out a new source of demand there: