Chinese aunties devoured 300 tons of gold in 10 days

By | May 2, 2013

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On April 26, the international price of gold hit its biggest one-day gain for the year, the New York gold futures prices on Thursday (local time) closed up 2.7% at $ 1,462 / oz. Analysts pointed out that two weeks before, the record decline led to booming of the gold market, investors’ enthusiasm was detonated in particular among the Chinese consumers. Industry analysis estimated that within 10 days, investors in mainland China swallowed 300 tons physical gold, accounting for about 10% of the world’s annual gold production! Gold stocks in the domestic gold jewelry industry in China has bottomed out, restoring the normal stock for distribution will need 600 tons of gold.

Talking about the financial market, now there is a new term called “Chinese aunties” (中国大妈). After brewing, the Wall Street giants finally shot short of gold, but they encountered a group of Chinese aunties who instantly consumed 300 tons of gold with 100 billion yuan (US $16 billion)! In this bet, on April 26 Goldman Sachs was the first to exit the market.

Within the gold sales over the past three months in the New York Mercantile Exchange (COMEX), JP Morgan Chase (JPM) accounted for 99.3%. This means that from February 1 to April 25, JP Morgan Chase had sold 1.966 million troy ounces of gold.

In sharp contrast with Wall Street selling of gold, Chinese investors are still snapping up gold. Industry analysis estimated that within 10 days, mainland investors rushed to buy 300 tons of gold. There are critics said before, the future price of gold would not be decided by the international investment banks but determined by the purchasing power of China.

Source: 金羊网, 新快报

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