Gold gains popularity as investment

By Kang Seung-woo

Staff reporter

With a financial crisis stirring in the debt-laden Euro Zone, investment in gold banking has been coming back into the spotlight.

According to Shinhan Bank, its gold-related funds "Gold Riche" saw its daily trading volume rise about 70 percent from the previous month ― to 84 kilograms of gold per day at 3.6 billion won ($3.18 million) from 54 at 2.1 billion won.

The Industrial Bank of Korea also saw the sales of its gold banking rise from 294 kilograms worth 12.08 billion won at the end of last year to 305 kilograms at 12.79 billion won last week.

"Due to the structural problem of the euro, there is a possibility of another crisis occurring. As a result, the trend for pursuing a safe asset will last for the time being," said SK Securities analyst Yeom Sang-hoon.

Investors worldwide have been seeing gold as an alternative investment. It is considered as, and is historically proven to be, a "safer" investment asset compared with equities and housing.

"Uncertainties over Southern Europe's debt crisis are growing, so money has flown to gold, which is seen as a safe haven investment," a Shinhan Bank official said.

The precious metal rallied to near its all-time high last weekend due to worries about Greece's fiscal woes spreading to the Euro Zone.

Gold for June delivery gained $13.10 to close at $1,210.40 an ounce, the highest level in five months. The metal reached its all-time of $1,226.1 last December.

Along with gold, bonds are also drawing attention from foreign investors.

The Asian market has tallied solid growth rates of late, contrary to its creaky European counterpart, so its sound financial and economic status is considered more resilient.

In the local market, foreign investors purchased listed bonds worth 1.1 trillion won for four days last week, counter to the stock market, which suffered a sharp drop in the KOSPI index.

금, 투자 대상으로 인기

빚 더미에 쌓인 유로 지역을 금융 위기가 휘저어 놓은 가운데 금 뱅킹에 대한 투자가 다시 각광을 받고 있다.

신한은행에 따르면 금 관련 펀드인 “골드 리치”는 일일 매매량이 전 달 54 kg (21억원) 에서 약70퍼센트가 증가해 36억 원 상당의 84 kg을 기록했다.

기업은행도 골드 뱅킹 판매가 지난 주 294 kg, 120억 8,000만원에서 305kg, 127억 8,000만원으로 늘어났다.

SK증권의 염상훈 투자분석가는 “유로화의 구조적인 문제로 또 한 차례의 금융 위기가 일어날 가능성이 있습니다. 그래서 안전 자산을 추구하는 경향이 당분간 지속될 것”이라고 말했다.