An investor in Henan spent all his savings on 3.5 kilograms of gold, only to see a net loss of more than 1.14 million yuan within nine months. He was ultimately forced to sell at a loss because he urgently needed cash, offering a stark reminder that investment requires caution.
A recent sharp drop in gold prices has taken many gold investors on a wild ride. On November 3, Mr. Zhang, manager of a gold shop at Zhongyuan Jewelry City in Zhengzhou, recounted the experience of one of his customers. In February this year, gold prices surged, drawing many people into the market. Sun could not resist and used all the funds he had on hand to buy 3.5 kilograms of investment gold bars, when the gold price had already reached 1,167 yuan per gram. Sun believed the price could still rise to 2,000 yuan per gram by the end of the year.
Over the following months, gold prices continued to fluctuate. Starting in late August, gold prices fell repeatedly, and recently returned to the "8" range, completely breaching Sun's psychological threshold. Combined with the need for cash flow for his restaurant business, he had no choice but to exit at a loss, selling all the gold bars to limit the damage in time.
"When I sold on November 3, the price was more than 840 yuan per gram, and altogether I lost more than 1.14 million yuan," Sun told Mr. Zhang with a sigh. No one can accurately predict gold prices, and investment must be approached with caution. The lesson from this experience was deep enough, he said, to "remember for a lifetime."
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