The gold rush is sweeping across Asia, despite prices nearing record highs.

Demand for gold in Asian countries is rapidly increasing, despite prices remaining close to the record levels reached in May, industry representatives report. Buyers are actively purchasing this precious metal as a hedge against economic and geopolitical instability. Currently, the price of gold in the spot market is just over $2,300 per ounce, which is 12% higher compared to the beginning of the year and only 6% below the record high set last month.Analysts also noteThe decrease in trust in other investment assets, such as real estate and stock markets, is driving interest in gold.

Expert opinion

Ruth Crowell, the CEO of the London Bullion Market Association, told Reuters that "when the macroeconomic situation becomes more stable, and when real estate and stocks start to attract more interest again, I believe that price sensitivity will return." In Japan, there is a predominance of optimistic gold investors, even despite record price levels, according to Bruce Ikemizu, the chief director of the Japan Bullion Market Association.

Chinese investors

Moreover, Chinese investors, facing currency devaluation, a prolonged decline in the real estate market, and trade tensions, have also begun to view gold as a reliable asset. According to experts, gold coin and bar purchases in China increased by 27% in the first quarter of this year. "The trend in the market is such that if a consumer wants to buy gold, they will do so, and the price does not concern them," noted Albert Cheng, the CEO of the Singapore Bullion Market Association, at the Asia-Pacific Precious Metals Conference.

Retail investments in Asia

In other Asian countries, retail investors are actively investing in this safe asset, which has become particularly popular among the youth audience.

The situation in India and Australia

At the same time, there is sensitivity to high prices in India and Australia. Gold prices in India have been trading at a discount to international prices for five weeks, indicating weak demand in the world's second-largest gold consumer. This month, sales of gold products at the Perth Mint dropped by 30% compared to the previous month. Forecasts for gold imports in India for 2024 suggest a decline of nearly 20%, as record prices are prompting retail buyers to exchange old jewelry for new instead of purchasing new gold.