Mini Presentation Blog Post
Gold
Gold symbolizes wealth. The bright shiny yellow color makes people feel optimistic, rich, and happy. In China, most women have at least 5 items of gold jewelry and most men have at least 2. Collecting Gold can be a good investment and seems to have little risk. However, The Global gold market price goes up and down, influencing buyers differently, depending on their culture. According to publications in different geographic areas, such as Chinese Finance News, Taiwan News and the Wall Street Journal people in different parts of the world reacted to the recent sharp drop in gold prices differently. American investors reacted negatively and tended to sell off their holdings of gold. The reaction in China and Taiwan was just the opposite, when the gold price went down, the Chinese purchased 300 tons of gold in only 10 days.
The Wall Street Journal points that the drop in the gold price that “after ECB President Mario Draghi put pressure on Cyprus to sell its excess gold reserves to help fund the bailout and plug a 6 billion euro budget gap. He wrote to investors which the Wall Street Journal obtained, because of the recent collapse in gold prices investors buying into gold-related funds will go with the flow-that is, stay away for now.”
Different cultures think differently. This is true in journalism as well as in people reactions. When the gold price goes down, those journalists deliver information in the way that influences how people react, good and bad.
In Eastern cultures, such as China, people are usually very conservative, but when people see the price of gold drop they immediately purchase more, thinking that is the best time to invest. But in Western cultures, such as America, people tend to panic and follow the trend. When the price of gold goes down, they act just the opposite, selling off and causing the price to drop even more.
In China, people tend not to trust banks or paper money, because of bad experiences in their history, so they have always trusted gold to hold its value in the long term. In America’s people treat gold as any other commodity, so when the price drops they are afraid that the demand for gold may be down for a longer term while the Chinese, because of their history, believe the drop is temporary.
I think, that why the gold price goes down and encourage Chinese people to buy more, that makes the Chinese economy run well. The American people chose to sell or not to buy that impacts market, causing the American economy to decrease. It’s funny, but it’s real when the situation deals with money.
http://m.youtube.com/#/watch?v=a1p6U1x-Kus&desktop_uri=%2Fwatch%3Fv%3Da1p6U1x-Kus
http://www.asianewsnet.net/Taiwan-immune-to-gold-buying-fever-46246.html
http://m.us.wsj.com/articles/a/SB10001424127887324030704578426613352725022?mg=reno64-wsj
http://finance.chinanews.com/fortune/2013/05-04/4786390_2.shtml
