by cctvnewschannel on Aug 19, 2011
Fueled by concerns over the security of bonds, investors all over the world are flocking to gold. Retailers are also benefiting from increasing demand for the yellow metal, and soaring prices. But analysts have a word of warning - what goes up, must eventually go down.
Gold prices have rebounded and continue to soar on the international market. Experts attribute the recent gold rush to investors' weak confidence in European bonds, on the heels of the region's lackluster economic performance.
Wang Na, analyst of Everbright Futures said, "Continuously soaring gold prices are due to investor worries. Concerns were revived by the recently-released European economic results, which were unsatisfactory."
Climbing gold prices on the global market are also reflected in the Chinese market. Although gold prices have hit more than 400 yuan a gram, investor enthusiasm is still high.
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.
Wu Jiang, a Xinjing jewelry retailer said, "We have raised our prices by more than 12 percent, as international gold prices have been on the increase. We will continue to watch the trend and make adjustments accordingly."
But experts warn investors to be cautious. They say there are possibilities of price declines in the short term.
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