Gold News

Chinese are Buying Gold for 'social status' purposes

A leading industry analyst has revealed that China's recent overtaking of India as the world's primary Gold Buying country is, in part, down to personal pursuits of social elevation.

Cheng Binghai, chairman of the Shanghai Gold & Jewellery Trade Association, which is a non-profit industry organisation in China, said that it was in fact the case that such purchases were being pushed by gold sellers, according to the Economic Times.

He told the news provider: "China is stepping up efforts to extend consumption in rural areas, including the newly-wealthy people who are trying to own top brand gold for social status purposes."

It is further suggested that a number of Chinese citizens are Buying Gold for peace of mind.

While China ousted India as the world's largest gold consumer in 2009, it overtook South Africa as the primary producer in 2007.

As desire for Investing in Gold increases in China, the same could also be said of the US, where the weak dollar recently pushed up Gold Prices – a trend that if continued, could herald a handsome return for yellow metal purchasers.

Daniel Smith, of Standard Chartered, which has operations in more than 70 countries, recently told the Globe and Mail: "Gold's rising because of a weak dollar, but also the recent selloff was a bit overdone as a lot of the factors that supported gold are still in place."

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