Demand for gold on the rise

PICTURE: ST FILE

Until about seven years ago, Mary kept 50 gold bars at home in a safe, in her cupboard and even in a bag.

She said: “Back then, the price was pretty good. We chose gold as it was a safe investment, one not vulnerable to external shocks."

Mary has since transferred her gold bars to a Certis Cisco safe deposit box.

The Business Times reported last November that investors and central banks have been avoiding paper currencies in favour of gold, whose value has hit new highs. Gold is now about US$1,580 (S$2,000) per ounce, compared to less than US$300 an ounce in 2000.

As countries print more money in an attempt to cope with the global financial crisis, the value of paper currency goes down when compared to real assets. Properties, gold and works of art have been rising in value ever since.