China and Gold.........
Source: China Daily
For the first time in the history of the People's Republic of China, the central bank is selling gold bars on the domestic market, and they are receiving a warm welcome from the public.
In Beijing, the sale kicked off on December 10. In three days, 700 pieces of the precious metal were purchased. They were worth a cool 5 million yuan (US$600,000).
The lightest bar weighed in at 50 grams. Three other bullions on sale sized up to 100, 200 and 500 grams each.
Individuals in China have not been allowed to own, buy or sell gold since 1949.
The decision by the People's Bank of China to share some of its coveted metal with the public is a bold step forward to open its gold market. Analysts see it as a signal of the bank's willingness to relax its monopoly and gradually open the gold market.
In an interview with Business Weekly, Roland Wang with the World Gold Council hailed the bank's decision. He said it is an encouraging move towards open China's gold market.
The market is widely expected to open in next three to five years. But the bank has not announced an accurate timetable.
Now individuals in China are permitted to buy gold bars for savings and investment, as long as they can afford them.
And the metal is still the top choice for most individuals to maintain and enhance their wealth.
About 1.5 tons of gold bars are expected to be sold in another 10 cities across the country including Shanghai, Nanjing and Wuhan, according to sources with the bank.
The bank has designated China Gold Coin Incorporation to be the chief dealer of the gold bars.
The bars are priced at 104 yuan (US$12.53) per gram, a bit lower than the current price of gold jewellery, which is losing the public's favour.
Publication date: Dec 19, 1999
¸ 1999, NewsReal, Inc.
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