Have a look of how Chinese crazily buy gold in China

[j2ee]

I am close to China and Chinese even crazily buys gold over here, gold shops are always full of Chinese

 

[boystyles]

Hello,
It's not strange to think that Chinese people have always trend to store gold. And I wonder that why do they that while their country have the largest amount gold in the world?

 

[BobbyBB]

Asians view Gold differently to us in the West. In the West we translate the price of Gold back into Dollars (or sterling) so if we buy one ounce at £1,000 and it goes to £900 we all think the loss is £100.

Asians don't do that. They view the Gold as a currency in its own right so if they buy at £1,000 an ounce (in their own currency) and it moves to £900, it's not viewed as a loss. Same as if they buy at £1,000 and it goes to £1,500, that's not viewed as a profit per se. It's hard for Westerners to undertstand this concept though.