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  • "Chinese Dama" winner first round vs Powerhouse Goldman Sachs!

    Post by : expatree

“Chinese mother investors beat Wall Street tycoons in gold buying”
“A war between financial powerhouse Goldman Sachs vs. Chinese Dama”

Lately these titles are already headlined in various media and newspapers.

Once the Chinese community got wind of the price of gold having dropped, Chinese investors, mostly mothers, swallowed 300 tons of gold within 10 days and had spent 100 billion yuan in gold market. Looking further on who the Final Winner might be between these giant corporations, as incredible as it might be, it is at this point however irrelevant. The question that should be asked is: ‘’what is the underlying motivation that drives these ‘’Chinese Dama’’ to act with this kind of behavior’’?
“Chinese Dama”, consists mainly of married woman between the age 40-60. They were pushed in front of the public opinion for the first time in 2013. When critics began to question their purchasing power - the media gave a report to tell us an unknown story. According to the monthly statement of online shopping in 2012 China’s most consumption capacity comes from the group between 50-60 years old. The purchase behavior of an individual from this group is 8 times more than a young consumer. This fact is a direct blow to the head and should make people more aware. When we are racking our brain to figure out how to “target” the young generations, no one expects that the “big customer” are those who you see everywhere in the wet market.
80% of Chinese Dama don’t know what the activities of Wall Street are but they are all aware of the value of the gold. In order to circumvent the risk of inflation, the best form of wealth preservation in traditional Chinese mind is buying “fixed assets” at its lower price. One stone can make waves, because lots of mothers follow blindly and suddenly resulting in a sparked buying spree among individual investors. Almost all Chinese Dama prefer gold bullion rather than cash in the hand.
Behind the story, it’s not very hard to find out that “Chinese Dama” is reacting nervously against a lower financial leverage and wealth in these uncertain times. This scenario reflects a mutual issue - “There are no other good investment options”. Low-interest, a depressed stock market, macro-control on property and progressive inflation means that “All Road lead to Rome” is not valid anymore, even “bank deposits equals money devaluation” is virtually becoming common sense. However the present system is so narrow that it’s lacking a professional and long-term developing mechanism to manage private wealth. The voice of reform is necessary to build a trustable investment channel in order for people to really get benefits of protecting and growing assets.
“The Wall Street” experts would be surprised at the reaction of this crazy “gold buying” but it’s too early to say that “Chinese Dama” is a big threat to their project. On the other hand, we believe “Chinese Dama” never considered the strategy on how to fight against “Wall Street”. Indeed “Chinese Dama” are just ordinary people, they are simple, realistic and traditional. Next time they would definitely make the same decision, perhaps not gold, but it could be anything…
For upcoming Mother’s Day, we give our best wishes and sincere blessing to all mothers worldwide.   
Date:2013-05-10 04:29:57
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