Sunday, May 5, 2013

Chinese housewives buying gold en masse following market slump


By Dawn Wang

gold-shoppers.pngOver the Labour Day holiday, various media outletsreported on the phenomenon of Chinese middle-aged housewives rushing to buy gold after the price of the shiny metal crashed. Pictures of Chinese housewives lining in front of gold stores were reposted by tens of thousands on Weibo.
Han Fulin, a professor from China's Central University of Finance and Economics compared the Chinese housewives to financial powerhouse / vampire squidGoldman Sachs. According to him, Chinese housewives have snapped more than 300 tons of gold, worth over 100 million yuan.
Following the sudden drop in international gold markets, Chinese gold producers slashed the price to the lowest level in two years, which ignited the enthusiasm of Chinese buyers, according to Shanghai Daily.
While Chinese people are somewhat notorious for being goldbugs, analysts suggested to Reuters that such a craze for gold is unlikely to be replicated elsewhere.
(h/t: Offbeat China)

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