[NEWS] Asian investors stricken by gold fever on record price

Asian investors stricken by gold fever on record price
By Manolo Serapio Jr and Rujun Shen

http://www.reuters.com/article/2011/07/21/businesspro-us-asia-gold-idUSTRE76K0RO20110721

"...Asian giants India and China, the world's two biggest consumers of the precious metal, expect to see demand continue to climb for the rest of the year, as growing wealth and stubbornly high inflation make bullion an attractive asset.

"Record high prices won't scare away investors," said Shi Heqing, an analyst at Antaike, a state-backed metals consultancy based in Beijing.

"Investors are likely to chase the rally and continue to buy gold because paper money feels increasingly worthless and they are worried about inflation."..."

"India and China together made up 57 percent of first-quarter global consumer demand for gold, the World Gold Council says.

China's frenzy for gold prompted the central bank to step up sales this year of gold and silver Panda Coins.

The People's Bank of China plans to sell 500,000 1-ounce gold coins, or 66 percent more than its earlier target of 300,000. It also tripled sales targets for half-ounce, quarter-ounce, 1/10-ounce and 1/20-ounce gold coins to 600,000 each from 200,000 earlier.

The increase in sales of these coins alone will represent a rise of 560,000 ounces in gold demand, or 17 tonnes.

Commercial banks and fund houses are also cashing in with products to let investors buy more gold jewelry, coins and bars."...