Chinese Aunties Lose ￥26 Billion Trading the April 2013 Drop in Gold, Did They Learn Any Lessons?

If they hang on long enough they'll do alright.

抄底黄金一年亏260亿 中国大妈得到什么教训

Just past the Dragon Boat Festival holiday, for the purchase of a large gold Chinese aunt who is not better. In the last week of May, the price of gold in a row below the 1270,1260 and $ 1,250 mark, the last trading day of May, in New York gold futures prices closed at $ 1,246 an ounce, a record low in February to come. In just the past five months, the New York spot gold price of gold tumbled 3.8 percent, the biggest monthly decline this year to refresh the past. The domestic market, the Shanghai Futures Exchange, Shanghai Gold Exchange gold futures, spot prices have also hit a new low since mid-February.

Fell to four-month low international price of gold, so that last crazy aunt who purchased gold in China once again in trouble. 2013 gold prices have been diving all year, the annual decline of nearly 28 percent, the highest in 1981, the biggest annual decline, the lowest reach $ 1,321 / oz 27-month low. Then "Chinese Mother" crazy buying, "hunters" golden War fame. However, a year later, the price of gold did not like "Aunt" will continue to rise after the expected fall in. Aunt were all stuck.

According to the China Gold Association data show that in April 2013 the gold rush tide outbreak, prompting China in the second quarter of the year aunt who consumed 385.82 tons of gold bullion in the first half of consumption is a substantial increase of 86.5% to the price of gold for the Beijing 1000 gold cases, thousands of gold a year fell 69 yuan per gram, gold Chinese aunt had purchased, and now the cumulative loss of about 26 billion yuan.

Gold continued to fall seriously undermined confidence in the gold market, but also allow people to "Chinese Mother" can mitigate this increased how many doubts. Gold fell from this round of market analysis, as the U.S. stock market performance in a relatively good period of time, the gold market is bound to give an enormous external pressure, and this pressure from the back of the stock market, or to take away a lot of speculative capital market , which has gold hedging, have a relatively strong pull. In India, its domestic market in recent weeks, the price of gold fell premium, because the market expects the new government to ease import restrictions on gold. In addition, U.S. Mint data showed that sales in May compared with April U.S. gold declined. In the futures market, hedge fund bullish bets on gold then fell again, down nearly four months to the lowest level.

From the current situation, the world price of gold is still a downward trend of the stock market, the price of gold at the bottom where? From the analysis of industry professionals, there is no authoritative judgment, according to Reuters technical analyst Wang Tao believes that gold will fall 1229, and even further down to 1214. As such judgments, gold prices continue downward trend is probably not happen in a short time the nature of change.

"Chinese Mother" is neither an economist, nor to see the Wall Street predators positions, they just want the money in the bank may shrink because of inflation, resulting in a kind of anxiety and panic, and in their traditional The concept, the gold should be the most effective means of preservation, and thus instinctively looking into this "safe haven." However, in the current environment of financial globalization, the traditional concept clearly outdated, "Chinese Mother" I do not know the depth of stepping into a high risk investment into gold, give them the impact and the loss is unprecedented.

In fact, the "Chinese Mother" are mostly buying gold jewelry, realized losses of about 80 yuan per gram, in order to carry out the transaction must also be purchased at the price of gold that day and realized the same situation. Therefore, according to the current price of gold jewelry sales price spreads and recovery, gold jewelry price of at least 380 yuan / gram or more, "Chinese Mother" was expected to get out of trouble. It seems that, at least in the short term, "Chinese Mother" is the sort of relief hopeless. This should serve as a case people invest - do not rely on "assumptions" to invest, nor should it take chances to invest. But to fully understand the risks of investment, rational analysis done after the shot.