China has a deep-rooted appetite for gold. Jewellery and gold bars have been traditionally considered one of the safest investment options. With the recent drop in gold prices, Chinese consumers have not only been on a buying frenzy in cities across the mainland, but also in Hong Kong.
Going, going, almost all sold. Chinese consumers rush to buy gold jewellery in Hong Kong after global prices slumped. A sign, some analysts say, that its investment allure remains intact.
"I think that what it tells us is mums and dads investors - retail investors - often have a better grasp of these things, have a better underlying sense of the underlying economic reality." Gavin Wendt, Founding Director of Minelife said.
Chinese consumers have not only been on a buying frenzy in cities across the mainland, but also in Hong Kong. (Photo/CNTV)
Now there's a dizzying cocktail of luxury purchases to choose from. Real estate, diamonds, art and fine French wines just a few of the options competing for the attention of mainland investors.
The recent splash of gold impulse buying can't mask a deeper trend. Gold jewellery purchases remained stagnant in 2012 on an annual basis. At the same time, diamond buying has soared. And purchases of fine art, another area where spending has surged.
"They come to Hong Kong because they think that the style, the design and probably the quality - the purity - is slightly higher than China." Albert Cheng, Managing Director of Far East, World Gold Coucil said.
Jewellery and gold bars have been traditionally considered one of the safest investment options. (Photo/CNTV)
Back at Hong Kong's gold shops, mainland tourists are still queuing with empty suitcases to buy when stores open.
Gold still glitters, but shifting patterns means it's got to compete with other goodies. And that may make it difficult for prices of the metal to retake their previous peaks.
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