Shanghai Daily news

China's heaviest gold coins are due to go on sale on December 6 and the issuer is confident the Chinese passion for the metal will ensure the 27 pieces worth more than 1.8 million yuan (US$216,867) each will be sold, especially after 1.985 tons of gold bullion were sold out within a week.
"We will hold a press conference in Beijing to unveil our heavy 10-kilogram gold coins on December 6," Chen Kui, general manager of Shanghai Gold Coin Investment Co Ltd, told Shanghai Daily. "Investors have already booked 16 coins and we are confident of selling the remaining 11 since we received numerous inquiries for them."
The company sold out the gold bullions that were issued to mark the coming 'Year of Rooster' which falls on February 9, 2005.
The 10-kg coins, which are 99.99 percent pure, have a diameter of 18 centimeters. The dragon, a traditional Chinese symbol that represents power and royalty in the country, are the main pattern on the coins.
The high gold prices seem not to have dampened investors' or collectors' enthusiasm for the coins as an initial batch of 300 kilograms of the 'Year of Rooster' bullion, which started selling in Beijing first on November 19, were sold out on its debut, earlier media reports said.
The reaction in Shanghai among buyers was just as warm when 100 kilograms of the bullion earmarked for the city were sold out after they were released to the market last Monday.
"Most of the bullions were reserved before the official sale," Chen said. "As the issuer, we sold out all the 2 tons of the bullions in the country up to November 25 and I am not worried about the retailers' sales performance."
The bullions, each of which has a mark of the rooster to indicate the coming animal year according to the Chinese lunar calendar, were sold in 50, 100, 200 and 500 gram pieces, and 100 pieces of 1 kilogram bars.
The bullions, which can be sold back to the issuer, were seen as an investment alternative on account of the bearish stock market, high property prices, and low bank deposit rates.
Gold prices have gained by 9 percent so far this year to hit 120.75 yuan a gram on Shanghai Gold Exchange, the country's sole gold bourse, on Friday.
Buyers of the bullions may cash them in at any time they want. The buy-back prices of the bullions will be based on the gold prices in local and international markets with a 2 percent commission added.
"The Chinese have a passion for gold and the current high property prices and bearish stock market will help gold glimmer even more as a safe haven to hedge against inflation," said Sun Changyan, a trader with Shanghai Lao Miao Jewelry Co Ltd.
The government will also allow individuals to trade the metal on the Shanghai Gold Exchange, Zhou Xiaochuan, governor of the People's Bank of China, the central bank, said earlier this year in Shanghai.