Chinese mother investors beat Wall Street tycoons in gold buying
- Staff Reporter
- 15:18 (GMT+8)
Gold buyers crowd a jewelry store in Nanjing. (Photo/CNS)
Chinese investors, mostly mothers, swallowed 300 tonnes of gold within 10 days, accounting for nearly 10% of annual global gold production and resulting in a sharp rebound in international gold prices on April 26, the Chengdu Evening News reports.
On April 26, the New York Mercantile Exchange's COMEX gold futures price rose 2.7% to US$1,462 per ounce, the biggest single-day rise in a year. It was a strong rebound after international gold prices tumbled on April 12 and April 15 to US$1,321/ounce from US$1,550/ounce.
The US sold 196,500 ounces of gold coins in April, a 10-fold increase year-on-year. Analysts attributed the gold price rebound to the buying craze in Asia, especially in China, with most Chinese cities seeing heavy gold buying.
According to foreign media reports, in COMEX's spot gold sales over the past three months, JP Morgan accounted for 99.3%, indicating the company sold 1.966 million troy ounces of gold between February 1 and April 25.
Wall Street tycoon investors have been dumping gold, while Chinese investors, mostly mothers, have been buying gold crazily since mid-April amid tumbling gold prices. China's buying power is deciding the price trend for the moment, but some analysts still call for caution over the direction of gold prices in the near future, according to the report.
Analysts attributed the gold buying craze in China to abundant money supply, stagnant domestic stock markets, a contained property market and a consolidating bond market. When investors saw gold prices fall almost 20%, they jumped in to buy.
In Hong Kong, all gold stores are preparing for the May 1 holiday shopping season, having ordered four times of gold bars than usual from London and Switzerland, as they expect mainland tourists will hunt for gold.
The World Gold Council said on April 19 that it believes the strong demand and supply shortage of gold will boost the gold prices in the long run.
In 2012, the global gold demand reached 4,406 tonnes, down 4% from a year earlier, while at the same period, gold consumption in China grew 9.35% to 832.18 tonnes.