The Chinese Lunar New Year begins on February 8th, reckoned in this calendar as the year 4714. It is also a time to welcome in the Year of the Rooster in the 12-year Lunar cycle. For those curious about their own birth year, the Year of Rooster arrived in 1921, 1933, 1945, 1957, 1969, 1981, 1993, 2005, and of course 2017.
This year, like in the past, the Lunar New Year is expected to be a boon for gold and silver sales (thus placing upward pressure on prices). Traditionally, the Lunar New Year is seen as an auspicious time period for making new investments—in particular, buying or gifting precious metals. It’s also in a general sense a “consumer holiday” akin to Black Friday and the annual “Santa Claus rally” in retail sales. Families in China often go on vacation to Hong Kong, Japan, or elsewhere to take advantage of special shopping deals during the new year festivities.
Buying gold as an investment, or offering it to a close friend or family member, doesn’t only carry a special significance in the context of the Lunar celebrations. However, the holiday does accentuate the cultural affinity for gold: People who identify with the Lunar calendar (also known simply as the Chinese zodiac) often make it a priority to buy gold in observance of the holiday, showing the same enthusiasm and zeal as families in India who are compelled to buy gold during the wedding and festival seasons.
Naturally, this is why the world’s major government mints offer so many Lunar-themed bullion coin series! We see this not just in East Asia, but also in Canada, Australia, and the U.K. This reflects the increasingly global reach of Chinese culture.
As we enter the Year of the Rooster, this year’s selection of gold or silver Lunar coins are being released. It is said that people born under the sign of the Rooster are believed to be charming, popular, confident, observant, hardworking, honest, and loyal—but they can also be vain and boastful at times.
When updated economic data for the first quarter is released, it should reflect a jump in gold sales in China and around the Asia-Pacific region.
The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product.