Chat with us, powered by LiveChat

The Popularity of Gold Among Chinese Consumers Has Bounced Back

Derek Wolfe

Updated: July 21, 2022

gold chinese consumers
Editor’s Note:

EDITOR'S NOTE: While the Fed’s rate hikes might have eased the average American’s appetite for gold, high inflation and geopolitical risks appear to be supporting the yellow metal, but not in the US. As gold prices continue to slide, Americans appear to be dumping their holdings straight into Chinese investors’ hands. Americans appear to be wagering that strong dollar demand takes precedence over its own erosion (inflation) and its potential vulnerabilities due to the shifting geopolitical landscape. There appears to be enough confidence in the dollar’s hegemonic status to avoid hedging any of the risks that may befall it. Be honest: who’s the smarter investor in this fragile scenario?

The popularity of gold among Chinese consumers has bounced back recently as the price declined to the lowest point in 10 months with the gold future price in the New York Mercantile Exchange down to $1703.6 per ounce after four consecutive months.

Representatives of gold stores in Beijing said the gold price has been adjusted seven times since June due to international gold price decline, according to a CCTV report. A representative from the flagship store of China Gold Group in Beijing said the number of consumers asking about gold bars had nearly doubled and sale volumes were up 20 percent.

Data from World Gold Council (WGC) showed that gold withdrawals from the Shanghai Gold Exchange reached 140 ton in June, a 37 tons improvement from May and 7 tons higher year-on-year

WGC stated in its Gold Mid-year Outlook 2022 that investors face a challenging environment during the second half of 2022, needing to navigate rising interest rates, high inflation and resurfacing geopolitical risks.

Industry insiders noted that the US Federal Reserve raising interest rate lifted the value of the US dollar leading the gold price to plunge. The WGC suggested that rate hikes may create headwinds for gold and continued inflation and geopolitical risks may sustain demand for gold.

Global Times

Originally published on Global Times.

No Investment Advice

GSI Exchange is a publisher and precious metals retailer. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Content on the Site is provided for information purposes only, and none of the information contained on the Site constitutes an offer, solicitation or recommendation to buy or sell a security. You understand that the GSI Exchange receives neither monetary or securities compensation for our services. GSI stands to benefit from the sell of retail cost precious metals on this site. To avoid hidden costs all prices are listed live 24/7 on this site. Read the full disclaimer

2022 Info Kit



Precious Metals and Currency Data Powered by nFusion Solutions