China’s Dragon Lunar new Year sets gold buying records
China’s Dragon new Year has set gold buying records with gold bullion and gold jewelry sales exploding. according to one report, sales of gold, silver and jewelry rose 57.6% at one of the best known gold retailers.
Author: Dorothy Kosich Posted: Monday , 30 Jan 2012 MINEWEB
the Year of the Dragon Lunar new Year holiday set a new record for gold buying among the Chinese with the gold buying boom anticipated to last until February 6th.
Data released by China’s Ministry of Commerce Saturday said sales of gold, silver and jewelry rose 57.6% at Caibai, one of Beijing’s best known gold retailers.
State news agency Xinhua reported that both Caibai and Guohua, another of Beijing’s top gold retailers, reached about 600 million yuan (US $95.28 million) in total sales. Beijing’s Municipal Commission of Commerce said the week-long holiday produced a 49.7% jump in sales over last year’s festival.
other jewelry stores across China also saw sales boom with customers buying new Year’s gold bars, gold ingots and other kinds of dragon-themed jewelry.
China has been encouraging its citizens to buy and hold physical gold either in jewelry or bullion to build financial reserves in assets strong than the U.S. dollar, the euro or other weakening currencies.
“To most Chinese nowadays, gold is more convenient to cash in than other investment instruments,” Guan Qiang, assistant manager at Caibai, told Xinhua News. “Despite common investment risks, the price of gold is clear and easy to judge.”
“Many Chinese people lost lots of money in property and stock investments in 2011, so they prefer to buy gold to maintain the value of their savings amid high inflation,” Liu Yangyi, a trader at the Shanghai Gold Exchange, told the Global Times Saturday.
“Chinese do not value gold only in sentimental terms. the precious metal is also expected to maintain or increase its value, as evidenced by the surging investment demand seen around the country,” Guan stressed.
the Shanghai Gold & Jewelry Trade Association expects gold investment to hit 955.2 tonnes by 2020, thanks to demand by a growing middle class and a more affluent society, according to Xinhua.
“Besides, Chinese people have a special feeling toward the dragon, and sales of gold jewelry in the Year of the Dragon are much better than in other years,” Liu said, adding the gold sales boom will normally last until the Lantern Festival or February 6 depending on the year.
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EUGENE, Ore., Jan. 9, 2012 /PRNewswire via COMTEX/ –Sharon and Joel Hellmann, a.k.a. “Gusfirefly”, started selling online 15 years ago to expand their mall store. recently they became “Seller of the month” and top seller on a website known as OnlineAuction.com (OLA.com). In just 14 months they have conducted over 10,233 positive transactions.”Having thousands of additional shoppers helped us to move more inventory,” says Gusfirefly.”It’s also really fun! Putting an item on a shelf with a price tag is fine, but putting a starting price, picture, and description online and watching to see what happens for a week is a game as well as a business! over time, we realized that we were happier with online sales over our brick-and-mortar store. The huge savings in rent and expenses has been an enormous benefit for us. We just keep listing as much as we can! The more new items, the more bidders look at what we’ve got.”The family enjoys the community nature of OLA.com. “Much of what we’ve learned over the past 14 months has been through experimentation, which we can afford because OLA doesn’t charge per-item fees – and through the help of other users. We love that! Even direct competitors are willing to help out so we can ALL be successful.”"The most interesting thing we’ve ever sold online was a single half-cent coin, we believed to be a 1773 Colonial half-cent. I think we paid about $4 for the coin. We listed the coin on New Year’s Eve, with a starting price of $5.99.” The 30% margin would have been a good sale, but that’s not how the story ends.”At about 6 a.m. on New Year’s Day, we got a call from a bidder offering us $500 on the spot. We thanked him but told him we never end auctions early, preferring to let the marketplace set the final price. That way he might get it for $5.99, but we might also get more than the $500!”He assured us we’d get far more than the $500. He explained that this coin was actually something called a Machin’s Mills Contemporary Counterfeit, variety Vlack 7, one of the 3-4 best known examples.”At his suggestion, we re-listed the coin with correct information, and, one week later, we watched that $4 coin sell for $13,899! That kind of quirky event is what makes online auctioning so cool! In little Rhode Island the chance of finding someone who knows about Machin’s Mills coins is minimal. on the web, however, we’ve got so many other folks with so much knowledge. what a great way to learn new things while making a living!”You will find Gusfirefly on www.OLA.com .
this press release was issued through 24-7PressRelease.com. For further information, visit http://www.24-7pressrelease.com .
SOURCE OnlineAuction.com, inc.
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Gold bullion is a horrible investment Its real return is practically zero over the past 100 years It’s the investment snuggie of late night cable television
I’m sure you’ve heard these statements before by popular investment gurus, who either don’t understand or ignore the true value of investing in precious metals.
Putting aside the fact that gold has appreciated at double-digit rates on average this decade against all of the world’s currencies and tripled in price over the past six years, let’s look at the metal not as an investment vehicle but as an insurance policy against loss of purchasing power.
Peruse this idea for just a brief moment.
To protect your home against destruction, you purchase an insurance policy, right? Gold bullion is a form of financial insurance and should be regarded as so. not as an investment but as insurance against the erosion of purchasing power caused by the declining dollar.
Dollar convertibility into gold ended on August 15th 1971, when President Richard Nixon forever closed the gold window. No longer tied to the gold standard, the U.S. dollar could be printed in unlimited quantities or in other words just ‘float.’
Today, after 38 years of being backed by absolutely nothing but the full faith and credit of our U.S. government, our beloved dollar is worth a fraction of what it used to be. if you compare the buying power of that one dollar bill in 1971 versus today, you would be able to buy only EIGHTEEN CENTS, after adjusting for inflation.
Why The Dollar will Lose Even More Value
In response to the financial crisis of the past year, the government turned on its printing presses to warp speed. As a result, the United States monetary base exploded from $800 billion in August of 2008 to $1.7 trillion. To put that into perspective that means there are now more than two dollars for every dollar that existed a year ago. Never in the course of history has the money supply expanded like this.
Thanks to our government’s monumental spending spree in their attempt to stabilize the financial system and kick-start the economy, our federal budget deficit has now soared to a new record level of $1.42 trillion dollars
If that wasn’t bad enough, our national debt is now over $11 trillion. And unfunded liabilities such as Medicare and Social Security stand at a staggering $58 trillion.
In order to pay for all of this, the government is either going to have to cut spending (ain’t going to happen), raise taxes (get ready) or crank up the printing presses some more and try to print their way out of this mess. And that deficit is projected to rise to $9.1 trillion over the next decade.
A nation just can’t partake in the unchecked money printing in this way without the dollar diving in value And the further the dollar is debased, the higher inflation will rise. This is the reason it is so, crucial that you possess gold. As an insurance policy to protect the buying power of the savings you worked so hard to put away.
Since 1971, the purchasing power of gold has endured and increased. History books are ladened with instances of paper money whose value has been annihilated. but not gold. Gold has endured through wars, inflation, hyperinflation, recession and depression.
Gold bullion is the ultimate store of value and protection of wealth. The value of gold has never been ZERO. Never. it could very well be the most important insurance policy you’ll ever purchase.
There’s a lot of chatter out there that the debt reduction “super committee” isn’t getting the results it should be, especially with the clock running out on their time to cut the requisite $1.5 trillion from the budget. However, I think we need to give credit where it’s due. the super committee has one truly Herculean accomplishment under its belt; it has managed to identify an issue that Americans of all political stripes – Republicans, Democrats, and Independents – all agree on.
The issue? It’s a proposal to ditch the dollar bill in favor of a new dollar coin being advanced by a pair of Congressmen from copper-producing states. the bill purports to save the taxpayers an estimated $5.5 billion…over 30 years. Even those miniscule cost savings were thoroughly debunked in a recent USA Today op-ed, which states that “[t]he GAO report itself admits that factors outside the scope of financial benefit to the government were not considered, including the impact on private businesses and banks, and the costs of transferring, distributing, storing, authenticating and managing dollar coins.”
Just when it seemed like this proposed legislation couldn’t make any less sense, recent polling shows that voters are nearly united against the idea of replacing a bill with a coin. a survey performed by Lincoln Park Strategies for Americans for George found that:
•76 percent of Americans oppose doing away with the dollar bill, with that number representing a fairly equal share of Republicans, Democrats and Independents and voters from all regions of the country.
•45 percent of Americans believe that phasing out the dollar bill will have a net negative effect on the economy, versus just 10 percent who believe it will have a positive effect.
•75 percent of Americans view the dollar coin as both unwanted and unnecessary.
Congress so often comes up with these impractical measures whose overly complicated benefits are unlikely to come to fruition under the best of circumstances. the proposed switch to a dollar coin goes a step further by threatening to foist an extremely unpopular policy on the American people for cost savings that are dubious at best.
Anyone with common sense knows that the only path to meaningful deficit reduction is to make serious, sustained spending cuts that are guaranteed to save money. With a struggling economy and a government addicted to spending, haven’t we passed the point of smoke-and-mirrors tricks like this one?
Randy DeCleene previously served as Vice-President Cheney’s Deputy Press Secretary and as a Senior Advisor to the Secretary of the Army. currently, he is an SVP at k-global, a DC-based communications firm who represents the pro-dollar bill coalition Americans for George.