Economy

    Chinese consumers rush for gold

    (Xinhua)
    Updated: 2010-09-26 07:46
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    BEIJING - International gold prices rallied to record highs on Friday, with spot prices nearing US$1300 an ounce. China's gold prices followed the trend and continued to climb. But consumer enthusiasm hasn't been affected.

    It's China's traditional gold rush. The peak season for gold sales coincides with the two national holidays.

    Impacted by a weaker US dollar and holiday consumption, international gold prices hit record highs.

    In China,the price of pure gold exceeded 340 yuan (US$50)?per gram. But consumer enthusiasm is just as high as the gold prices.

    One resident said "For us, the price is very high. But we need to buy gold now since the price continues to increase."

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    Chinese consumers rush for gold Gold price opens higher in Hong Kong -- Sept 3
    Chinese consumers rush for gold Mayor prefers gold to place on UN World Heritage List

    Consumers have flooded into gold shops, to find their perfect accessory.

    Liu Ru, Sales Manager of Gold Shop said "Chinese people share a concept. That is to buy gold when the price is climbing. Since now it is holiday, many customers buy gold accessories as presents for relatives and friends. And also it is wedding season, increasing gold demand."

    Silver prices have also soared, and even reached a 30-year high, making investments in the grey metal more attractive than ever.

    Analysts say the continuous decline of the US dollar has stimulated investors to choose safe haven products such as gold.

    And with high consumption and investment demand, gold prices will continue to rise in coming days.

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