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Q: Why is China obsessed with gold?
A number of articles have come out recently about China's fixation on gold. Why is this? Is this because it is hard for average Chinese to invest their money - lack of trust in the institutions? Or because gold is so shiny!? Is this a safe way to go? Or will they end up disappointed with the return?
I'm not quite sure why exactly but apart from the news, I have found this one a personal level as well. When I mention I'm from South Africa the firs thing they also ask me is about our Gold. You have a lot don't you? You must be rich then?
Because it's shiny ? My wife told me it's because gold does not loose its value over the years, unlike paper money, which is subject to inflation. In China, banks offer very little enumeration on bank accounts, it barely compensate inflation (if you trust official numbers for inflation 
). For Chinese citizen, investing abroad is super super hard unless you're part of the oligarchy. So if you do not want to not see your savings evaporate, you buy flats or you buy gold. Flats tends to degrade, might become worthless after a housing bubble pops, etc. And Chinese gouv takes it away after 70 or 90 years. Gold, well, it just keeps being shiny, hidden in your mattress.
Gold not loosing its value is of course questionable. At least, its value fluctuates, as illustrated by a recent crash of gold's value. I imagine some guys keeping vats of gold dissolved in aqua regia 
It's because gold is one of the few places it is possible to put your money, apart from property and some limited stock trade.
The interest for metals started to soar at about the time the gubbermint first started to try and curb the property prices (until then people thought there was no way it could ever be a bad thing to invest in property)
happywanderer:
+1. Yeah bank interest sucks so it's always either been stock or property. And when those look shaky: gold.
Scandinavian:
also trust in banks and the financial systems is low. the filthy rich are afraid to have their banks account emptied by the government. then it's better to have a stack of gold bars next to the squatter
Gold will never loose its value over years. I read an Article today and in 10 days people in china bought 100 billion of gold ( there were 10 % discount) and it was all housewives.. Because they know their money is safe and they can sell it later to get more money as the price for gold keeps on increasing.
some interesting thoughts on Gold ~
As a more intense version of Yellow, GOLD denotes joy versus happiness, wisdom versus knowledge and worth versus value.
The colour Gold implies wealth and status in every culture, and as the most precious tradable commodity on earth, Gold backs all global currencies and as such as referred to as the Gold Standard.
When we say someone or something is as good as gold, we mean it is the absolute best it could be.
We give gold stars to everyone from school children to military Generals to honor and commend, and we call a most favored person a golden-haired child.
To express the genuineness or authenticity of something or someone, we use the term solid gold . . . And when a situation suddenly blesses us with good fortune, we call this the goose that laid the golden egg.
Gold is the colour associated with King Solomon and when we speak of someone who has deep (therefore priceless) wisdom, we use the expression, "The Wisdom of Solomon".
GOLD is the colour of wedding bands and all things that are expressions of spiritual illumination (halos), eternity and precious bonds.
Our reverence for Gold goes back to the ancient Egyptian, Mayan and Aztec cultures who embraced the transmuting qualities of Gold in their spiritual practices and Rites of Passage. Gold typified eternity, illumination (the Sun glorified), beauty and splendor. GOLD was most often paired with Indigo Blue to connote wealth, stature, wisdom beyond this world and spiritual evolution.
We also have coined intuitive expressions to indicate the negative side of GOLD.
When someone is after another person's money and feigns affection to get it, we call them a Gold Digger, and if someone is consistently deceptive or treacherous we call them a Gold Bricker.
