Gold Investment Boom Triggered by Pension Anxiety in China

Recently, the international price of gold has been continued lower, the gold investment market surged of a bargain-hunting consumption boom. Compared to the “speculative” sense in previous years, “hedge” has become the primary purpose for investment in gold bullion consumer, the phenomenon is generated to avoid the assets shrunk caused by the currency inflation in one aspect, and on the other hand because of the flow of funds caused by the social pension panic.
The topic of pension has been an extremely concerned social spots for every family. Data or expert’s warning on the topics such like increasing aging population, the national statutory postponed retirement age is said to be 65, the shortfall of pension will reach 18.3 trillion Yuan in China in 2013 have let the elderly who are about to enter their 60th and 70s and 80s in the society who are about to deal with these huge expression gradually felt “overwhelmed”. Can pension insurance and pensions meet the basic protection of lives in old age? How can the investment in gold support the huge pension costs in the near future?
“Not until recently relative reports about the gap on pension insurance on the internet are passed crazily, did we realize our future pension problem, it is not that reliable to be just relaying the fees we paid every month, the risks of investing real estate, stocks, funds let me step out, the only method I can figure out is to invest gold bars to preserve the increase,” A middle-aged women who just purchased a bullion weighing 500 grams said.
The product attributes and monetary attributes will not let the purchasing power of gold itself devalued regardless of how the monetary value of entities changes. The investment of gold can offset the loss of assets caused by inflation, and the price of gold can rise with the market fluctuations. Once the price rose, the method of repurchasing it into banknotes can let the investor have gaining in his account. Investment approach of this kind is without any difficulties and small risks for the majority of consumers and all types of groups, thus the physical gold becomes the favor of most investors.
According to the stakeholders of the sales department in Beijing, “recently the number of investors who are purchasing large size of gold increases obviously, now more than 100 grams of gold bars are hotter than the 30 and 50 grams that are more popular in the past, the state is due to the decline of the international gold price so that incremental purchase can reduce the cost of investment in one hand, and in the other to the demand of endowment investment stirs the phenomenon”. The source said, the greater the weight of the invested physical gold, the higher the anti-risk the family assets.
 In the store we stepped in, type of bullion which is in the topic of “money begets money“conforming to the demand of pension triggered investment boom. Appearance of the bullion take advantage of the repetitive stacked coins to echoes the topic - invisible demand for “money begets money, gold into gold, invest in gold to increase the value” to extend the permanent value of gold and maintain the investment. The creative concept then is more apt to meet the consuming mentality for “the savings pension” and “value protecting”.
The expert said that in fact the gains of investment in gold bullion will be not that obvious in short term. It is commonly evaluated that about 3 to 5 years of long-term investment is needed to achieve the substantial value-added space, and the function of the long-term investment should be mainly focused on hedging, thus get can that it is good choose to invest in gold in the market in China.