Source: CCTV.com

10-10-2008 12:39

Special Report:   Global Financial Crisis

With no end in sight to an ever-deepening crisis in financial markets, gold is emerging once again as number one choice for many who do not know where else to put their money. That has given an enormous boost to the price of gold futures on the New York Commodity Exchange at around 888 US dollars per ounce, and still rising.

With no end in sight to an ever-deepening crisis in financial markets, gold is emerging once again as number one choice  for many who do not know where else to put their money.

Andreas Stratmann said "No, I cannot sell you a gold bar because we don't have any more of them. But if you put in an order now, it will take at least six weeks for delivery."

This sort of conversation is becoming a frequent occurrence amongst customers and goldsmiths in Germany. Recently supplies of gold bars have flown off the shelves as people have lost confidence in the financial market, and turned to gold as a safe investment.

Stefan Gloeckner, one Frankfurt resident said "Well, you have something in your hands, whereas paper lying somewhere, well, can always decay. With gold, you always have something in your hands."

Carsten Sommerfeld, Executive Director of Tradegate AG Bank said "Gold has always been a safe haven. In times of financial crisis and political or economic insecurity, people tend to put gold into deposits, or even better, to actually buy it in its physical form."

And there seems to be no end to the uncertainty. Over in France, people are poring over journals and websites to find out the latest developments in the financial crisis. Sales of newspapers focusing on the economy have risen sharply, by about 20 percent compared to a year ago. While websites offering financial information are also seeing as much as 45 percent more traffic.

 

Editor:Xiong Qu