Source: CCTV.com

11-03-2008 09:39

International gold prices are fluctuating, and this has pushed domestic gold jewelry prices below the 200 yuan per gram level at some stores in Beijing.

International gold prices are fluctuating, and this has pushed domestic gold jewelry prices below the 200 yuan per gram level at some stores in Beijing.

This sign at a gold jewelry store in Beijing has been attracting a lot of attention. It says "Low Price Storm: 189 yuan per gram of pure gold jewelry." Inside the store, many people are scrambling to buy up the precious metal.

One customer said "I buy a lot, because it's cheap. The current market price is 215 yuan per gram. It is much cheaper here."

In other places in Beijing, gold jewelry is being sold anywhere from 198 to 220 yuan per gram. It is far below the peak price of 270 yuan per gram seen just a few months ago.

Li Xiaodong, Deputy GM of Marketing Co., of China National Gold Group said "If international gold prices continue to drop, the price of pure gold jewelry will fall even lower."

Analysts say gold bullion is of higher investment value than gold jewelry. Gold jewelry is designed to be a beautiful adornment; it is both an investment product and a consumable. But it is much harder to resell, with much lower resale value than bullion. Gold bullion fluctuates in line with gold market prices and can better hold its value.

 

Editor:Xiong Qu