Pakistan Joins Big Yellow Metal Rush
Source: Commodity Online (9/18/09)
"Hedging in gold is still on higher side in Pakistan. . ."
Physical demand for gold picked up in Asia, one of the world's largest bullion markets, despite high prices having discouraged consumers throughout the year.
India is still buying despite the high prices and the traders are assuming prices will go up again in international market.
Same is the case with Pakistan with festivals lined up in the coming days.
The yellow metal is building up for an all-time high above $1,030.80 an ounce, set in March 2008. The international investors including investors in Pakistan put money into gold on poor returns on investments and international economic recession.
Hedging in gold is still on higher side in Pakistan and touching a new high around 60% during September 2009 besides some stockists brought out 10% to 15% of their reserves in the market to capitalize on rising price.
Gold's attraction as an alternative investment has helped boost price by over 25% in August-September 15, 2009 while it gained around 32% in 2008.
Sale of yellow metal in Pakistan registered a decline by around 65% in August 2009, though the demand was still there on wedding season but the customers curtailed volume of buying.
Around 350% increase in the gold future contracts volumes was expected in 2009 in Pakistan. The investor interest is incredibly strong across the whole metal complex and gold is the prime hedge against inflation.