The economic and geopolitical reasons for China's increased demand of gold MARY LOUISE KELLY, HOST: Gold sparkled this spring. The price of the precious yellow metal jumped as much as 22% between mid-February and mid-May. One of the big drivers was demand from China, and NPR's John Ruwitch decided to find out why.
JOHN RUWITCH, BYLINE: The Caibai market in Beijing is like a huge department store just for jewelry. There are counters and counters of earrings, bracelets, necklaces, charms, statuettes, coins. You name it, they have it - including, on the top floor, rectangular gold bars of various sizes.
That's where we met a man who had just plunked down some of his savings. He only told NPR his surname, Li, because he wasn't comfortable talking about his investments publicly. LI: (Non-English language spoken).
RUWITCH: "The gold bars are beautiful," he says, "and they're practical." LI: (Non-English language spoken). RUWITCH: "Gold," Li says, "retains value.
" And he cites an old saying - in troubled times like war, buy gold. It's advice a lot of people in China have been taking lately. The reasons are straightforward, according to Joshua Rotbart, a Hong Kong-based precious metals trader.
JOSHUA ROTBART: They always say the price of gold is - actually shows you the fear factor of people. RUWITCH: Fear, or at least concern, has been running high. China's economy is limping, its stock market.
.. John Ruwitch.
