The week-long new year festival in China has prompted huge sales in gold, as more and more Chinese investors turn to alternative asset classes, according to AAA.
Boston, MA, February 02, 2012 – The week-long new year festival in China has prompted huge sales in gold, as more and more Chinese investors turn to alternative asset classes, according to Alternative Asset Analysis (AAA).
The alternative investment advocacy group welcomed the news of the 57.6 per cent rise in sales of precious metal jewellery. Figures from the Ministry of Commerce also show that many people bought up investments in the form of gold bars and ingots, as well as the more traditional jewellery.
Guan Qiang, the assistant manager at Caibai, one of the most popular jewellery retailers in Beijing, said “Long treasured by Chinese, gold is no longer owned only by a privileged few, but has become a new investment channel open to all.” Giving gold as a gift to loved ones is a popular part of the New Year tradition, however, this year more than most, it is being sought out as an alternative investment, AAA’s analysis partner, Anthony Johnson said.
Mr Johnson explained that there is a lot of new wealth in China, but investors are concerned about investing in the stock markets, due to the fact that the global economy is still unstable. He explained, “investing in the stock market is no longer the obvious option for most, as alternatives that are more loosely correlated with wider economic performance are becoming more popular.”
Ms Qiang added, “You can hardly even see the gold bars, necklaces and pendants in the display case. People seem crazy about gold, snatching it up more like a ‘cheap cabbage’ than such a precious metal,”
AAA is a supporter of alternative investments of all kinds, but is especially interested in impact investing and other forms of ethical investments. This include forestry investment schemes like the non-native, sustainable plantation schemes operated by Greenwood Management in Brazil.
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