The market for bullion in China has surged this month, at times commanding a record premium over international prices of more than $100 an ounce, compared with an average over the past decade of less than $6. On Wednesday, an ounce of gold in Shanghai cost $2,007, about 6% higher than the price in London or New York, according to calculations by Bloomberg.
It’s a flight to safety familiar to students of economic stress.
“With the yuan falling, the property market slumping and capital controls keeping money from leaving the country, investors are buying gold,” Bloomberg economists David Qu and Chang Shu wrote in a report.
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