Source: CCTV.com

02-29-2008 08:51

As global gold prices hit new highs, Chinese investors are cashing in their gold for profits. Some gold retailers are under pressure to provide sufficient cash reserves for the buybacks.

As global gold prices hit new highs, Chinese investors are cashing in their gold for profits. Some gold retailers are under pressure to provide sufficient cash reserves for the buybacks.

Since the end of January, gold futures in China have risen 13 percent from 195 to 220 yuan a gram on Thursday. Higher gold prices have translated into greater demand from gold investors to cash in their investments. This week, gold shops in Beijing are finding that customers who bought gold a couple of weeks ago have returned to cash it in.

One gold investor said "I bought 500 grams of gold at 194 yuan last year, today, I sold them at 215 yuan. So my profit is 10 percent, almost 1000 yuan."

Li Xiaodong, General Manager of Flagship Shop of Zhongjin Gold said "Before last week, our cash reserve was three million yuan. But we now have to double or even triple the amount to meet demand for cash."

Beijing's gold retailers are now repurchasing some 50 kilograms of gold everyday, more than doubling last week's figure.

China has overtaken the United States to become the world's second-biggest gold market, after India.

 

Editor:Xiong Qu