Last week's Golden Week proved to be really golden for the economy of Hong Kong as demand surged for gold, spurring unprecedented sales in the country's jewelry industry.
Gold prices have already been, as of Friday, appreciating in price for three consecutive days, and there was no stopping it as people continue to line up in jewelry stores and purchase jewelries made out of the precious metal.
According to Paul Law Tim-fuk, director Luk Fook Holdings, sales during the first six days of Golden Week jumped by thirty percent for both jewelries and bullions. This is obviously much higher than the projected ten percent. And the gold sellers are not complaining.
Most of the purchases were gold bracelets and jewelries that will be used for marriages in the coming months. Apparently, Chinese astrology says that this is an excellent time to get married because there is a double spring in the lunar calendar. Gold bullion sales are not that stellar, however, due to the high price of gold, but jewelry is not affected.
Despite this, only a few sellers are still selling. Patrick Lui Yik-keung, Chow Tai Fook's central Kowloon district manager, said that the price of gold for immediate resistance has already gone past the technical limit at $1050 an ounce for the first time. It has already risen 19 percent since the start of the year, the best record that it has seen since 1948.
Meanwhile, some speculators believe that this gold rush will still last for a few more months, possibly until January. It might be because central banks are releasing too few gold in the markets. Furthermore, bad reviews speculation about the US dollar is worsening the situation for the currency, forcing a lot of investors to concentrate on the precious metal to hedge their wealth. After all, the dollar is still just paper. It could always lose its value anytime.
