- CNTV English - CCTV News

High gold prices deter Asian investors

08-10-2011 14:46 BJT

Watch Video

Play Video

As financial markets across Asia take a hit from global volatility, investors in the region are seeking alternative investments such as gold. But recently, the spike in the price of the yellow metal is making many think twice before buying.

With Asian financial markets in turmoil, safe-haven assets such as gold are becoming all the more attractive.

The already-high gold demand has been further boosted due to concerns over the debt situations in Europe and the U.S.

In South Korea, investors hope to have deeper pockets so as to invest more.

Baek So-ra, a Seoul resident said, "I want to buy gold for investment if I have extra money. It's likely the gold price will continue to rise, so I would like to invest in gold."

China has also seen a surge in demand for gold and silver since late last year, as investors dumped stocks.

But as gold prices hit a new high above 1 thousand 770 U.S. dollars an ounce on Tuesday, many are thinking twice before investing in the precious metal.

Angel Yung, a Hong Kong resident said, "The gold I own was bought a long time ago. We just put them in the safe. But we won't buy anymore at the moment because the prices are much too high now."

But governments haven't been deterred from purchasing gold. South Korea's central bank bought gold for the first time in 13 years. It purchased 25 metric tons of bullion in June and July, more than doubling its holdings.

Lee Seung-jae, a researcher of Daishin Securities said, "Also, the Bank of Korea recently purchased gold, other countries' governments are also trying to buy gold instead of U.S. dollars or U.S. government bonds."

Experts point out speculation is a major reason behind the recent price hikes. But they believe gold prices will rise further if stock market jitters persist.

Editor:Li Wanran |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program