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Super gold attracts Chinese investors

 
An impressive gold bar is making its debut at the Shenzhen International Jewelry Fair. [CNTV]
An impressive gold bar is making its debut at the Shenzhen International Jewelry Fair. [CNTV]


There's been no end to Chinese investors' appetite for gold in recent months. And now, an added lure - investors can buy not just 99.9 percent gold, but 99.999 percent - even purer than before.

An impressive gold bar is making its debut at the Shenzhen International Jewelry Fair. Weighing in at 99.999 kilograms with 99.999 percent purity, the gold bar is the ultimate for every Chinese gold bug.

The high purity is actually in line with the latest standard of gold set by China. In the market, gold of higher quality naturally costs more, about 20 yuan more per gram. But investors seem more than willing to fork out the extra cash for better-quality gold.

Gold dragon on display at the Shenzhen International Jewelry Fair. [CNTV]

Gold dragon on display at the Shenzhen International Jewelry Fair. [CNTV]


Sun Zhaoxue, president of China Gold Association said, "Gold is still seen as the major safe-haven to Chinese investors, and many wish to purchasing gold."

But some experts are not so bullish on the outlook for investing in high purity gold products. They say gold with higher purity is usually softer, and that makes processing more complicated and expensive. And at the end of the day - they argue the difference is just about invisible to the naked eye.

A gold dealer said, "It takes a great amount of work to make sure high purity gold meets the standard, every process needs to be strictly controlled."

Some insiders say gold with the purity of 99.999 percent is usually used as conductors for electronics, and were previously used mainly in the aviation sector. Therefore, for most ordinary investors, gold with a purity of 99.99 percent is golden enough for investment and collection.

(CNTV September 21, 2011)

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