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Gold stocks will meet the best time luxury

Recently, the Ministry of Commerce said China will further cut, including some high-end luxury goods, including tariffs. Although the Ministry of Finance denied this claim, but the rich fund, said Li Jun, chief analyst of overseas investment, tariff reduction is the trend, Chinese consumers, “bought the World” at the same time, but also to learn to “make the world go ‘, now is the gold luxury the best time to stock products.

China-driven luxury goods industry, carnival

Ushered in the luxury sector in recent years the strong momentum of development. Data show that the end of 2010, the global luxury goods market has reached 172 billion euros. The next 10 years, total consumption of luxury goods will exceed 350 billion euros.

This point is undoubtedly the deepest feelings of Chinese consumers. World Luxury Association’s latest report shows that in 2010 consumption of luxury goods market in Mainland China totaled $ 10.7 billion (not including private jets, yachts and luxury cars), second only to Japan has become the world’s second largest luxury consumer. Expected in the first quarter of 2012, China has been spent New Year’s Day, Chinese New Year, Valentine’s Day shopping season, or will surpass Japan to become the world’s largest consumer of luxury goods.

Wells Fargo’s chief overseas investment fund, said analyst Li Jun, the emerging luxury consumers are changing the market. Overseas experience shows that per capita GDP reached $ 2,500 after the consumption of luxury goods will rise sharply; and luxury consumption growth rate is about twice the GDP growth rate. At present, China’s per capita GDP exceeded 3,000 U.S. dollars. GDP growth of 9% to 10%. This means that China is the world’s luxury goods consumer demand to drive into the rapid expansion phase.

More from the vertical view of the industry, luxury consumer corporate profit growth is often faster. China, for example, CLSA forecast the next four years, consumption of various sub-sectors will be the fastest growing luxury and gambling industry, the growth rate of up to 25% and 20%, far beyond the consumption growth rate of about 12% of the industry.

Luxury consumption of luxury goods as investment

As the investment community the popular saying: investment you consume. Domestic investors to buy Apple at the same time, may wish to buy Apple stock.

Li Jun said, from the fundamentals view, compared with the low-end consumer, luxury consumption, investment value becomes more apparent. Luxury consumption of the high barriers to entry, competitive pressure is less than the low-end consumer; the pricing of these goods are strong, by the impact of raw material and labor prices far less than the low-end consumer. Luxury consumer more than a century-old company, tried and tested, viability stronger.

“Good sales and profit performance, which is also a luxury stocks as an investment last year was the most eye-catching variety.” Contrast to the global stock market low, medium and high-end consumer goods and gold and silver stock investment, Wells Fargo Fund found that in the past two more than a year’s time, the best is silver, followed by the Dow Jones on behalf of high-end luxury consumer index is representative of worst-performing index of the low-end consumer, after the performance difference between the two has reached about 100%.

Li Jun said, Despite the early rise, but overall, the top consumer goods overseas stock valuations are not too high, there is still attractive. “For example, Porsche and BMW, in the past 12 months is about 9 times earnings and 9.9 times the Louis Vuitton and Rui Table Group, the price-earnings ratio over the past 12 months are also 18 times and 19 times in between.”

Mo is worried about luxury hot

What is luxury? In the reform and opening up, sunglasses and suits have been a luxury for a while people, sunglasses and suits are reluctant to mark on the torn, with four swagger; pagers and cellular phones have is our luxury, always playing; private Private cars and many people now have or are still a luxury. Therefore, an object is a luxury? Is dynamic, difficult to define the relative terms of wealth owned by the purchaser.

Enthusiastic consumption of luxury goods that the rich first:

And disadvantages it? Yes, these “provide evidence for the wealth or power to obtain and maintain the honor of consumption activities” (economist Veblen’s words) called conspicuous consumption, will to some extent distorted social values, and some of the rich rich-quick mentality and face, really disgusting and “hurt people nervous.”

As a whole? There. Adam Smith in “Wealth of Nations,” he wrote, “no extravagance Act” represents a “king ministers trying to control individual incompetence and economic activity for granted.” Montesquieu in the “Spirit of Laws”, said more clearly: “the rich are not extravagant, the poor will starve to death.” It sounded unhappy, but think of it, indeed some truth, conspicuous consumption in the final analysis consumption, the same stimulating the economy. The rich spend big money to buy “worth” of luxury, rather than “Grandet,” “play money at home, focusing instead on the number of” better than many, after all, involved in the circulation. Some economists say that “a society by the rich to buy luxury goods, and the transfer of wealth redistribution,” which will give more opportunities for the poor. Some people say, and do, like charity, the rich rich and the poor to buy luxury goods is also to promote the flow of a non-violent and less outrage, “the fourth assignment.”

The prevailing “not rich luxury” was a problem, now, mainly “get rich first” in buying luxury goods, is the “first first luxury” or “the rich will be extravagant,” the people should not be used average income to warn “not rich extravagance.”

Besides the poor or rich people are keen consumer of luxury goods:

This is the most critical moment all the worry and anger. But this seems a bit much concern. Despite belt-tightening, even to sell their kidneys, and sold themselves to buy a case of extreme luxury, but we should believe that most people would correctly select the “belly” and “face” of importance.

Over the years, luxury goods why is there so much vitality and allure is its culture, coincident with the “love of luxury and nature of human desire,” which, of course we can use to promote Anpinledao and austere lifestyle to adjust , but also relative to the recognition and acceptance, not the same tough twist.

Reduce tariffs on luxury goods exist, although controversial, but price is the trend, in addition to economic considerations, the objective has the effect of suppressing peaceful dilute luxury. The core is the unique luxury and cultural identity and to show off, LV rotten Street, the effect is gone. But the rich will surely find a new luxury, such as yachts and aircraft, and so forth, so we do not make a fuss. In fact, they may be accused of over-stimulate people’s desire for luxury goods, because the “rebellion” is also a character in the “luxury.”

People who buy luxury goods is simply to prove himself, to meet the self-esteem and gain respect of others. So buy a luxury society and its critics, as a number of different people to open up more to prove himself and win the respect of the path and the atmosphere make life colorful and diverse.

Popular for foreign luxury goods, we need to rethink our country why the lack of big brands and luxury real estate, how to learn from others, in product quality, brand and culture to do more.

While China’s luxury consumption growth, but from the “tide” is probably still far. Even if the “tide” came here on how to effectively avoid the consumption of a variety of flower heads of public funds, is the real big problem to be alert. We should not mistake the target, their eyes fixed on the total population (including the rich), the little girl who excitedly before buying the LV, so chatter on the subject and the “teachings” is not some fun?