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:
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:

“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).”
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.

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