The gold rush has swept across Asia, despite nearly record prices.

On June 11, 2024, at 7:30 PM Eastern Time. SINGAPORE, June 12 (Reuters) - Demand for gold in Asia is rapidly increasing, even as the price of the metal remains near historical highs set in May. Experts note that buyers are actively purchasing gold as a safe-haven asset amid geopolitical and economic instability. Currently, the price of spot gold is just over $2,300 per ounce, which is 12% higher compared to the beginning of the year and only 6% lower than the level reached last month. A decline in confidence in other investment options, such as real estate and stocks, is also contributing to the growing interest in gold, analysts claim.When the macroeconomic situation normalizes, and real estate along with stocks becomes attractive again, I think that price sensitivity will increase.Ruth Crowell, the CEO of the London Bullion Market Association, shared her opinion.

In Japan, the number of people investing in gold exceeds the number of pessimists, even as prices reach record levels, sources including Bruce Ikemizu, director of the Japan Gold Market Association, report. Investors in China, facing currency devaluation, a prolonged decline in real estate prices, and trade tensions, are also beginning to recognize the value of gold, experts note. Purchases of gold coins and bars in China increased by 27% in the first quarter of this year.There is a trend in the market: if a consumer decides to buy gold, they will do it regardless of the price.“,” says Albert Cheng, CEO of the Singapore Bullion Market Association, at the Precious Metals Conference in the Asia-Pacific region.

In other Asian countries, retail investors are actively turning to this safe asset, and gold is becoming increasingly popular among the youth.

(The material was prepared by Ashita Shivaprasad and Brijesh Patel in Bangalore, edited by Mark Potter) © Reuters - 2024