Market Report - Chinese Gold Investment Up

CHAN:
China's investment in gold has increased by around 50 percent over recent years, coming in behind India as the world's second largest gold consumer. At the China International Jewellery Fair, gold lovers eye everything from standard rings to designer necklaces. Or for those with no limits, how about a gold tiara or tailor-made luxury bra.

Amid the world's worst financial crisis since the Great Depression, retail business is suffering in China, according to fresh economic data.

Zhang Guoan, C.E.O. of gold wholesale company Guilu Jewellery, said Chinese remain careful investors in the volatile market.

[Zhang Guoan, C.E.O., Guilu Jewelery]:
"You could say that Chinese people are thinking about maintaining the value of their investment. Gold is a kind of currency, so it is safe for people to invest their extra money in buying gold -- this is a good idea."

Gold's price has recovered from 13-month lows in October, but remains far from a record hit in March.

Chinese have actually piled into the precious metal even faster this year, as other get-rich-quick schemes sour.

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[joelito101]

Yeah, they're buying it from all other countries...they know what is coming.

[DillonX]

I believe pretty much all the gold purchased by Chinese consumers is from China's own production.