Source: CCTV.com

03-20-2008 11:22

With investors increasing nervous about putting their money in stock markets, gold has emerged as an increasingly attractive alternative. And many Chinese firms are seizing the chance to boost business, launching a range of gold-related investment products.

With investors increasing nervous about putting their money in stock markets, gold has emerged as an increasingly attractive alternative.

Chinese investors are buying into gold as a haven amidst the stock markets routs. Many Chinese jewelers have increased their gold prices and promoted the sale of gold bullion at their stores. In Beijing, many jewelry stores have increased their 24 karat gold prices from 239 yuan per gram to nearly 243 yuan per gram.

But consumers are still passionate about the metal, as more people turn to gold as a hedge against inflation.

One salesperson said "The price of gold has risen a little bit recently, which has boosted the sale of our bullion products."

Many securities firms have launched gold futures businesses, bringing in new clients.

Gold provides an alternative at a time of high stock market volatility. But industry insiders say, just like other investments, investing in gold also has risks.

World gold prices have been high since August 2007; and prices surged nearly 50 percent in 6 months.

Many analysts suggest bullion could rise even further in the future, as more people rush into buying it. Though the price may retreat in the short-term due to profit taking. They suggest caution when investing in gold.

Editor:Xiong Qu