Bullish bullion continues to fan the sentiment of "gold bugs," with some saying gold prices will soar to US$1,300 (HK$10,140) per ounce, and hit US$2,000 by year's end. Super-optimists are even forecasting US$5,000. But this positive sentiment isn't shared universally.
India is among the world's leading optimists, scooping up a big part of the inventory put up for sale by the International Monetary Fund earlier.
Its people are fond of gold too, but when the price exceeded US$1,000 per ounce, common folks found it quite prohibitive.
Gold is also popular among the Vietnamese, who must still be haunted by memories of the chaotic times when payment in gold was the only way to escape the country crammed on board a refugee boat.
This sad chapter in the country's not-so- distant past explains why gold is still accepted in everyday transactions, and pays interest just like deposits in its banks.
In contrast, China, which is rich in foreign exchange reserves, isn't particularly enthusiastic about gold - at least not outwardly, as it made no move when the IMF unloaded its gold reserves.
I hear that mainland officials aren't keen on gold as its price is volatile and pays nothing as an investment vehicle. Therefore, it's not considered the best way to maintain the value of the country's reserves.
There is no way for outsiders to determine whether China's apathy over gold is jus
t a facade, masking a gold acquisition agenda. But its civilian purchasing power is not to be underestimated - customs officials recently found more than 10 kilograms of gold bars on a smuggler.
Source : thestandard.com.hk