Sunday 11 September 2011
Posted by
Admin Hijrah Dinar
Posted by Brittany Stepniak - Thursday, September 8th, 2011
It's wedding season in India and nothing says "I love you" like a beautifully, ornate golden necklace or a shiny block of solid investment.
The demand for these physical gold commodities are sky-rocketing as gold prices dipped yesterday after setting another new all-time record high earlier this week.
According to gold dealers in Singapore, buyers are flooding into the market while no one seems to be selling. The dismal global outlook has gold locked into its position as a safe-haven as the economy continues on a questionable path.
One sellar said:
Bullion is attractive as an asset, and record high gold prices don't even scare away these investors. Inflation is the only thing these Asian investors are scared of...
And as the big festivals and weddings in India won't come to a halt until late December, the current spike in the gold-buying trend is likely to continue thriving in the next few months.
And as long as the global economy continues to remain weak, the gold market sentiment is likely to remain unchanged for even longer than that...
*Indented excerpts from REUTERS.
It's wedding season in India and nothing says "I love you" like a beautifully, ornate golden necklace or a shiny block of solid investment.
The demand for these physical gold commodities are sky-rocketing as gold prices dipped yesterday after setting another new all-time record high earlier this week.
According to gold dealers in Singapore, buyers are flooding into the market while no one seems to be selling. The dismal global outlook has gold locked into its position as a safe-haven as the economy continues on a questionable path.
One sellar said:
"Most sell orders are parked close to
the $1,900 level, and so long as we stay in the range of $1,800 to
$1,900, the bullish trend is pretty much intact."
Premiums on gold bars in Singapore were steady around $1 an ounce above spot prices, dealers said.
Although gold could face a sharp
correction in the short term after prices rallied more than $400 from
the end of June, buying interest from many Asian countries remains
buoyant as gold's appeal as a safe haven and good hedge against
inflation underpins the long-term bullish trend.
Indonesian households continued to
favour small gold bars to hedge against rising inflation, while the
government said surging gold prices helped quicken the pace of price
rise in August.
The Asian buying frenzy should come as no surprise, as Asia is home to the world's two largest gold consumers: China and India.Bullion is attractive as an asset, and record high gold prices don't even scare away these investors. Inflation is the only thing these Asian investors are scared of...
And as the big festivals and weddings in India won't come to a halt until late December, the current spike in the gold-buying trend is likely to continue thriving in the next few months.
And as long as the global economy continues to remain weak, the gold market sentiment is likely to remain unchanged for even longer than that...
*Indented excerpts from REUTERS.
Category:
Gold Saving / Investment
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