Chinese Housewives’ Gold Rush Keeps Price From Falling!

• Chinese Housewives’ Gold Rush Keeps Price From falling! 
  by Wang Yanlin (Shanghai Daily), May 02, 2013
  A “TUSSLE” to determine gold prices has connected two groups of people who could hardly be more different – Wall Street moguls and Chinese housewives, with the latter turning out to have the edge.
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  According to “Voice of China” radio program, one of this year’s most popular phrases may be “Chinese housewives” – as a major force which reportedly spent 100 billion yuan (US$16 billion) over the past two weeks purchasing 300 tons of gold and thus helping to sustain gold prices at US$1,468 an ounce.
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  The “Chinese gold rush” has prevented short selling, where gold is sold and then bought back when prices fall. The practice was seen as a possible bid to shore up the US dollar – gold is often regarded as a means of safeguarding wealth against a weak dollar – and to maintain stable interest rates in the US.
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  China’s latest hunger for gold began in middle of last month following a decline in global gold prices after Cypriot authorities made a commitment to sell excess reserves.
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  On April 12 and April 15, international gold prices dropped by 15 percent, from US$1,560 per ounce to US$1,330 an ounce.

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