Gold price is increasing until it has caused an increase of investors to put more money in gold and its derivative, the gold has become a safe haven for investors when the economy is unstable.
Chinese jewelers in August is normally one month to slow, but many shops in Shanghai, who visited the Reuters news agency saw an unexpectedly large sales of gold in recent weeks, where shoppers are not discouraged by the price of gold climbing in recent months.
A store manager at Lao Feng Xiang Co. Ltd, one of the largest jewelers in Shanghai, Ms. Liu said the surge in gold prices has increased the frenzy to buy gold. Gold in the market like hot cakes, especially the GM 50 and 100 grams of gold bullion, also said that sales of gold increased by at least 30% this month from a year ago.
The prospects for Chinese customers are likely to exceed gold soon the Indians, who are currently the main buyers of gold in the world. However, contribute significantly to long-term trend.
Gold demand is high in China, and can also be useful to stabilize the temporary drop in prices. Gold hit a record high of $ 1,900 an ounce spent the last week, but fell to about $ 1,820 an ounce, but a fall that seems to encourage investors.
Jinrui gold futures analyst, said Hou Xingqiang many consumers and investors see falling prices as buying opportunities. As for the Chinese traditions of gold is seen as the deterioration of the store.
Predicting the gold price is higher on Wall Street, JP Morgan, with the hope that prices reach $ 2,500 an ounce before the end of the year.