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Tuesday, 26th July 2005 (4610 views)

Gold is increasingly seen as a good form of investment in many Asian countries, with a leading industry source describing it as a "good financial vehicle" to put money in.<br/><br/>Albert Cheng, Far East managing director of the World Gold Council (WGC) told Reuters that gold is seen as a safe purchase that will keep hard-earned money safe.<br/><br/>"In a longer term, you ask people whether they have confidence in the US dollar? Not really, right?" he said.<br/><br/>"Gold is a good financial vehicle where you can put your money in."<br/><br/>Gold has historically been a form of investment for all walks of social life in Asia, with Indian families traditionally giving newlywed daughters gold jewellery as a way of keeping them financially secure.<br/><br/>Now, India is expected to consume 600 tonnes of gold this year, up from 590 tonnes in 2004. China's demand is also expected to surge by ten per cent in 2005.<br/><br/>Lower prices are expected to lead to increased interest in gold buying as a safer investment in times of trouble.<br/><br/>Rajesh Metha, chairman of India's largest jewellery exporting firm, Rajesh Exports, commented: "It is the best saving investment available anywhere in the world. Gold is the only commodity in which you can invest and can also use."<br/><br/>Meanwhile Madras dealer Ranjeeth Rathore said simply: "I have seen that when prices are low, people don't listen to any investment advice. They say they want gold. That's it."<br/><img alt="track" src="http://feeds.directnews.org.uk/feedtrack/dn.gif?feedid=196&itemid=15011191"/>

 

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