I recently read about Boya Chen’s blog China becomes worlds top gold buyer. According to the latest World Gold Council report, the weight of Gold that China purchased has raced past India’s 715 tones, reached to 798 so far for this year. And reachers even estimated that this number will break over 1000 by the end of the year.

These all due to the significant decreasing of gold price earlier this year. At that time almost all the gold bars in every jewelry store were sold out. It’s true that investment on gold some how is seen safer than venture investment but blindly purchasing along the trend usually is not a wisdom response, especially for Chinese who always like to investing based on their own consumption habit. Overbuying of one specific product can eventually cause the oversupply of the good and further depress its actual value.