Sunday, May 11, 2008

Local News: Chinese gold sells fast in Huangshi, Hubei province

Chinese gold bars sell fast at Huangshi

China Gold News (newspaper)

April 29, 2008


By He Xi'en and Zhang Jing

According to the newly inaugurated Gold Phoenix Jewelry Building, on April 17, China investment gold bars began selling in Huangshi, Hubei province and have already successfully passed test markets. In four days, the amount sold exceeded 600,000 Chinese Yuan setting a new sales record for a product at Huangshi Gold Jewelry market.


On April 18, the second day of China gold bar sales at Huangshi, even the heaviest standard bar, 1000 grams, was sought by customers. According to sales people, in nearby Dazhi City, a local businessman traveling out of town heard of the gold bars being sold in Huangshi and immediately called Gold Phoenix to confirm. Afterwards, he entrusted a family member to come first and purchase the bars and in addition to the 1000g bar bought 3 50 gram gold bars as well. The salesperson says: “This type of buyer emphasizes the function of gold in preserving value, and normally buys a large quantity.” According to Gold Phoenix Jewelry Store Physical Gold Exchange Group’s salesperson, different customer demands require different sizes of gold bars and the highest selling bars are the extremely large or the extremely small weight ones.


Customers whose purpose is to preserve their wealth normal choose the large weight gold bars, their age is about 40, and are usually people with high incomes such as those in finance, company managers, high school principals, etc. Customers who purchase gold bars as gifts for friends, loved ones, or for themselves usually choose the 100 gram and 50 gram small weight gold bars. Many customers buy many bars at once. There are also some older customers who buy many gold bars at once in order to give them as gifts to younger relatives or to store. “The sales area seems like a stock trading company office.” Gold Phoenix Jewelry Store Store Manager Zeng Yilin describes the new model of selling Chinese Gold Bars. “Chinese Gold Bars are sold at the real time price following the international spot gold price. The gold bar price fluctuates once every half hour. On the basis of the international spot gold price, each gram receives 10 yuan more for a sales handling fee. The buyback fee is 2 yuan for each gram. Customers can choose for themselves at which price to resell their gold.” According to Zeng Yilin’s introduction, after the gold bars began selling at Huangshi on 4/17, Gold Phoenix Gold Jewelry Store each day receives a large amount of interested customers. “Gold bar sales have their highest concentration around 10:30AM and 3PM. Most consumers can understand the idea of gold as an investment pretty well. A few customers first pay to reserve their gold bars and come pick up the bars on a later date.” Besides them, each store every day receives a large number of phone calls inquiring about gold prices which sales people must answer truthfully. To this end, each store allows a “stop order” service where a customer can specify a price point and leave their phone number. If the gold price drops below this price point, the gold store will contact the customer first so that they can come purchase the gold. The China Gold Association Vice Chairman and Wuhan Gold Ornament Jewelry Industry Association Chairman Meng Hanhua believes Gold Phoenix Jewelry Store sales of gold bars provide a new investment channel for residents of Huangshi and provide a new model for gold sales in Southwest Hubei province.

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