A man selects a golden ornament at a jeweler's in Guangzhou in south China during the Spring Festival holiday. [Photo: Guangzhou Daily]   Feb.24 - The city of Guangzhou in south China is buying gold like crazy this Spring Festival holiday, with a record nearly 8 tons in the form of jewelry, gold bars, coins and ornaments needed to meet the demand.

 

A local newspaper reported the price for gold continued its upward trend on the international market, hitting a 26-year high at 670 US dollars an ounce recently. But, this is apparently not enough to curb the increasing enthusiasm among consumers in Guangzhou to purchase the precious metal.

 

The report said jewelry stores in Guangzhou have been filled with people since the Spring Festival holiday began last Sunday. Gold bars and golden goods designed especially for the festival are the most popular in shops. As of Thursday, people have bought a total of 7.82 tons of gold in the city, breaking the record of 7.78 tons set in 2002. According to calculations, this volume could cover 100 square meters.

 

Some consumers believe golden merchandise is a good investment, while others hope for good fortune by wearing golden accessories.

 

Gold is also important as people look towards the marriage and baby booms expected for 2007.

 

However, experts have warned consumers that the Spring Festival holiday is not a good time to purchase the precious metal, as its price is much higher than usual. Furthermore, as the price for gold may recoil after the holiday period, people may then be able to purchase golden goods recommended by authorities on the market for much cheaper.