Chinese investors renew 'gold rush' as market prices rocket up

(ECNS) -- A "gold rush" during the week-long Lunar New Year holiday and chaos in the global stock market have pushed the price of gold up on a daily basis in China, the China Business News has reported.

In the economic powerhouse of Shanghai, the gold price rose from 300 yuan ($46) per gram on February 9 to 320 yuan during the holiday, said a customer.

The rocketing prices did not stop Chinese investors' enthusiasm.

Caibai and Baihua, two of Beijing's best-known gold retailers, experienced a 10 percent surge in customer numbers over the New Year period.

Gold and silver sales increased by 22 percent among key dealers monitored in Central China's Hubei Province. In the eastern province of Jiangsu, major market brands, including Chow Tai Fook, recorded a 20 percent growth in sales.

Holiday spending data released by the Ministry of Commerce also showed that gold and silver products featuring monkeys were especially popular as 2016 is the Year of the Monkey in China's lunar calendar.

China remained the world's biggest consumer of gold last year, ahead of India, despite the pressure of an economic slowdown, the World Gold Council (WGC) said last week.

The WGC also said buying by central banks as well as Chinese investors helped lift demand for gold in the final quarter of last year, and the trend looks set to continue.

BullionByPost, a British online bullion dealer, said fears over another global financial crisis prompted its sales to rise to a record high of 5.6 million pounds on February 12.

Chinese market researchers hold different opinions about the investment prospects of gold. Jiang Shu, the chief analyst at Shandong Gold Group, a large-scale state-owned enterprise, said the gold bear market is not really over as US dollars are expected to be strong in two to three years. But Guotai Junan Securities analyst Ren Zeping has put gold on top of his list of preferable investment options.