Thursday, May 2nd 01:57 PM IST

Holiday 'Goldrush' hits Hong Kong

# HKEx  # China gold  # Gold ETF  # Hong Kong gold  

After the recent slump in gold prices, Hong Kong's already healthy community of gold shops, mainly in its traditional tourist areas, has increased, with a flurry of new openings.

HONG KONG(BullionStreet): China mainlanders arrived in large numbers to Hong Kong during the three day May Day holidays to purchase cheap gold from the island.

According to gold dealers in the autonomous region of China, they were swamped over the three-day holiday by tens of thousands of mainlanders. Gold prices in Hong Kong are lower than in the mainland.

Analysts said the recent plunge in gold prices has influenced the Chinese market. While some are eager to sell off their gold products, others see it as a golden opportunity to increase their positioning of the precious metal.

After the recent slump in gold prices, Hong Kong's already healthy community of gold shops, mainly in its traditional tourist areas, has increased, with a flurry of new openings.

Most of these gold seekers failed to get a piece of bullion bars as they had already been sold out. The China Gold Association reported that gold sales had tripled on many days.

The price of gold bullion has so far fallen 14 percent this year as investors worldwide sold the metal after a decade-long rally.

Chinese customers are not the only ones snapping up bargain gold.Gold coin sales by the United States Mint are heading for their highest levels in three years.

Sales totaled 209,500 ounces in April, up from 62,000 ounces a month earlier, data on the mint's website revealed. The amount for December 2009 was 231,500 ounces.

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