GOLD: New Choice Of Investment

As GOLD shows its strength in financial crysis more and more people change their investment to gold and other precious metal.

According to the Straits Times, more and more Americans are succumbing to the charms of the yellow metal as they seek shelter from a swirling combination of fears - a double-dip recession and the debt crisis in Europe, the volatile stock markets and the shaky currencies.

The recession has been open the mind of the Americans which stocks and property are traditionaly their choice of investment to change the investment option into gold.

Last month, the sale of the one-ounce, investment-grade American Eagle gold coins zoomed to its highest level in 11 years. Some 190,000 coins were sold, nearly three times the number last year. The demand continues to be strong this month, a US Mint spokesman said on Friday as prices scaled a new high.

While coins make up a relatively small part of overall gold demand, the record sales point to a perked-up investor interest. Financier George Soros, for instance, grabbed headlines when he recently doubled the size of his gold holdings, which now represent 7.5 per cent of his US$8.8 billion (S$12.3 billion) fund.

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