SHOPPERS swarmed into gold jewelry shops in Shanghai over the weekend lured by the two-year low of bullion price after global gold prices plummeted.
China National Gold Group, the country's biggest gold producer, slashed the bullion price from 313 yuan (US$50.55) per gram to 298.50 yuan per gram in its flagship store in Shanghai on Saturday, the lowest level in two years.
Global gold prices tumbled to the lowest since July 2011 on Friday after the Cypriot authorities made a commitment to sell excess reserves of gold. Spot contract for 99.99 percent purity gold on the Shanghai Gold Exchange shed 7.17 yuan per gram last week, tracking losses in overseas markets.
"Many customers came to shop due to bargain prices," said an assistant at the China Gold store. "The 10-gram and 20-gram bars are sold out, and we don't have many stocks left for the 50-gram and 100-gram."
Another salesperson at Shanghai-based jewelry retailer Lao Feng Xiang said "the number of customers doubled" and gold bars were selling like hot cakes at its shops over the weekend.
