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Chinese New Year – 3 reasons China’s gold economy is still shining bright

Chinese New Year – 3 reasons Chinas gold economy is still shining bright

The Chinese economy has been well publicised of late, after a tumultuous 2015 and with increased volatility marking the start of 2016 trading. All thoughts of the economy will be on hold in early February however, when Chinese New Year is celebrated, on Monday 8th.

This year is the Year of the Monkey and the Chinese will mark the celebration with the usual mixture of gifts, holiday, family reunions and public celebrations.

Gold plays a very traditional role in Chinese New Year and features in many families celebrations, in one way or another. You can join in the tradition of Chinese New Year yourself with our options for buying gold, whether for your own investment or as a gift.

Insider's Guide to gold and silverGold gifts to close relations

Gold is considered a symbol of wealth and prosperity within China, which means you can rarely go wrong with giving it as a gift on big occasions. Having said that, the Chinese consider gifts such as necklaces to be the symbol of an intimate relationship, so take care youre giving the right gift to the right person!

Chinese New Year red envelopes

Red envelopes are a symbol of Chinese New Year and, of course, they contain money! No gold included unfortunately (excluding the lettering, see below), but the envelopes usually contain crisp new monetary notes. Numerical amounts are important. The Chinese will never give an amount ending in 4 (which has connotations of death), but frequently give amounts ending in 8 or 9 (fortune and longevity).

Gold lettering

Red may be the colour of Chinese New Year (specifically, this year, its the Red Fire Monkey) but the red is traditionally emphasised via gold lettering. To complement the lettering, firecrackers and strips of red paper are decorated with gold symbols, which typically form spring couplets of four chinese characters, known as Hui Chun.

However, Chinas relationship with gold goes far beyond gift giving and decoration at New Year. The worlds second largest economy, by GDP, is intrinsically linked to gold around the world, in a variety of key ways.

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China is the worlds 2nd largest gold buyer

2013 saw China become the largest, global purchaser of gold and experts predict that the Chinese appetite for gold is on the rise. However, India marginally wrestled the crown back from China in 2015 to regain its top spot. By 2017, its predicted that China will collectively be purchasing 1,350 tonnes of gold, up from the 2014 level of 1,132 tonnes, so its expected the top consumer crown may switch again.

China produces more of the worlds gold than any other nation

South Africa was, for many years, the worlds leading gold producer, but recently China and other countries have surpassed South Africas output. In 2014, China was the leading gold miner, extracting 450 tonnes of the global total of 2,860. Australia, in second place, produced 270 tonnes.


Download our 7 step cheat sheet to gold investment here


Relationship with GDP

As mentioned, China is the worlds second largest economy by GDP which, as an economic measure, can impact gold in a number of ways. Debt to GDP, for example, is a common measure of strength in an economy and, over time, the measure has been shown to impact the gold price.

As ever, gold is a safe haven for investors and a recommended option for balancing & securing your investments. In times of uncertainty, as more investors choose gold, the price has historically risen.

If youd like to find out more or celebrate Chinese New Year by purchasing some gold, then you can download our free Guide to Investing in Gold and Silver, simply by clicking here. Or get in touch directly on 020 7060 9992.

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Video: How to Choose a Gold & Silver Dealer?

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Did you know that not all gold and silver performs the same? Your choice of dealer can directly impact the returns on your investment. So, what should you look for in a gold or silver dealer? In this short video, we explain why we’re one of the UK’s leading precious metal dealers and how we’re uniquely suited to help with your requirements, whether you’re an experienced investor, or just starting out.

Gold & Silver Dealer

Choosing the right gold or silver dealer can make all the difference, both when it comes to credibility & reassurance and also when assessing vital elements that can affect your investment return, such as coin selection & tax.

Physical Gold make it easy for you to purchase gold and silver; whether you want to make a one-off investment or prefer saving a regular amount, month-by-month for the future.

As industry leading, BNTA accredited gold-investment professionals, we specialise in helping both experienced investors  – looking for gold and silver diversification, as well as those looking for the very first time, to own some gold of their own

We offer access to unique gold investment solutions, some of which are not available anywhere else, such as:

With a dedicated consultant to discuss your aims and objectives for your wealth and future, we’ll suggest the most appropriate options for you, bearing in mind the all important considerations around tax-efficiency.

Because of our industry reputation & size, we have significant buying power, which enables us to negotiate the best prices for you as an individual, before organising the purchase on your behalf.

We can then either securely store and insure the gold for you or simply send the gold, safely insured, directly to your door.

When the time comes to sell your gold, we even guarantee that we will buy it back from you, meaning you never have to worry about how liquid your investment is.

As an accredited business, with unique investment solutions, offering dedicated consultants and a buy back guarantee, investing in gold & silver has never been easier, more secure or more suited to you than with Physical Gold.

Contact us at www.physicalgold.com/contact or call 020 7060 9992.

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New Year Health Check: Does your portfolio need gold?

Financial New Year Health Check

A New Year health check is top of most people’s priorities in January. It’s the time of year where we take a look at our waistlines and consider dusting off the treadmill and the dumbells! Most of us are adept at making personal health resolutions (though, perhaps not so good at keeping them) when, perhaps we should also be reviewing our financial health….

The momentum of a new year should be harnessed to re-appraise your finances, and assess your investment and savings plans for the future. Maybe you could do with saving a little more, or perhaps this is the year to rebalance your pension? If you assess your financial situation, you’ll establish where you can make small changes to optimise your assets.

Annual reviews are common in financial services, as twelve months may have seen drastic changes to your income, and your investments may have gone up or down. An annual check helps you reassess your own personal plans and take appropriate action.

If you don’t currently own any gold or silver, the new year is a good time to make enquiries into purchasing some and protecting your other assets. Gold and silver prices are currently at a 6 year low, so if your portfolio could benefit from some balance, now is a great time to make that change.

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Ongoing market turbulance

A slowdown in the Chinese economy and ongoing terror alerts, are threats which could increase the volatility of equity and property-heavy portfolios in 2016. Protecting against these threats, with gold or silver, is considered by experts as a sound investment strategy, as they provide balance to a mixed portfolio of assets.

If you already hold precious metals as part of your portfolio, it may be wise to review your holding, relative to your other assets. You may wish to increase your percentage of gold or silver, to protect your other assets from sharp market falls.

The optimum ratio of gold or silver to hold in your portfolio of investments, will vary according to the individual and the market conditions. Frequently reviewing this is key to success. Reviewing and rebalancing on a regular basis ensures your ratio is optimised, and is good investment practice, as the value of all investments will rise and fall over time.

If you’re considering getting into shape this new year, I’m afraid we can’t offer treadmills or dumbells, but we can help with the financial shape of your New Year health and offer assistance with gold and silver. We provide tax-efficient ways of adding these to your portfolio, whether it’s your pension, nest-egg or regular savings.

You can contact us via any of the methods listed here, or if you would like to know a little more about investing in gold and silver, you can download our guide here.

Insider's Guide to gold and silver