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Saturday, August 20, 2011

Chinese Rush for Gold as Prices Climb

Gold prices are climbing as nervous investors around the world seek a safe way to preserve their wealth. Global gold prices are pushing record highs as investors shun risk.But rising prices aren't deterring Chinese investors--who are buying up large quantities of the precious metal. The trend is likely to continue, as experts say the price of gold will climb higher. Not only for the Chinese gold has always had a timeless appeal. And since the world markets are on shaky legs, the Chinese investors increasingly put their money in gold . Since investors want to avoid the risks of other investments, with gold prices now reaching record levels. Gold has always carried a timeless appeal in China--but even more so as panic grips global markets and Chinese investors seek out the precious metal as a way to preserve their wealth. Despite high prices, demand in China's jewelry stores is high. Customers of the jewelers see gold as a good investment. "Because stock prices fall, and there is no better way to invest, gold for us probably the safest investment." says one Chinese buyer Chinese economists believe that the price will continue to rise, "The monetary system is still in crisis. And in the future it could be worse. So I am assuming that the gold price will rise for a long time. " says Gold expert Liu Shan'en . Some stores are already sold out on gold bars, where the customers are already in the morning lining up before the shops open .With soaring prices, gold jewelry stores in China have become hot spots. In some stores, gold bullion has reportedly sold out--with customers queuing outside before they opened."The currency system has not yet passed its gloomy period and things may go worse in the future. In this case, I personally think that gold price will experience a long-term rise."says Gold expert Liu Shan'en. A gold investor said, "Gold was only 215 yuan a gram a few years ago. Now the price has nearly doubled. I think gold retains value though, and it has been appreciating. It is worth investing." Gold retailers are laughing all the way to the bank. Some are even enjoying sales up 70 percent from a year ago.

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