"Fear and Worry" Sparks Gold Demand

Source:

"Demand for New Zealand gold has jumped as the global recession worsens, with buyers looking to invest in the precious metal rather than currencies or stocks. . ."

Overseas buyers are contributing to the increase in gold purchases taking place in New Zealand, it has been suggested.

Demand for New Zealand gold has jumped as the global recession worsens, with buyers looking to invest in the precious metal rather than currencies or stocks, the Sunday Star Times reports.

Mike O'Kane, head bullion trader at the New Zealand Mint, told the news source that the failures of large U.S. banks are contributing to the increase in gold purchases.

"We've just started to see another surge in demand through fear and worry," he stated, adding that one U.S. buyer recently purchased 570 gold coins - approximately NZD 1 million ($353,000) worth - and an Asian couple also flew over to buy $500,000 worth of the precious metal.

Reuters recently stated that gold has become one of the most popular choices for investors during 2009, as many buyers are opting to purchase the commodity rather than currencies such as the U.S. dollar.

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