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South Korea to open bullion market in 2012

Release Date: 
Tuesday, December 14, 2010

 Demand for gold in South Korea is about to increase as the nation confirmed it will open a spot bullion market in 2012, Bloomberg reports.

An administrator at the equities and future markets operator said Koreans view the precious metal as a secure investment. Gold serves as a backup to wobbly currencies and a hedge against inflation. Last week, the metal climbed to a record value of $1,431.25 per troy ounce.

"Koreans have more interest in gold than other commodities, regarding it as an investment tool," Kim In Soo, an executive director at the Korea Exchange, told Bloomberg.

Asian gold demand is "very strong", Aram Shishmanian, chief executive officer of the World Gold Council, told CNBC earlier this month. He noted that demand is fueled by purchases of jewelry and regional economic growth. Consequently, Asian growth is definitely impacting the market for gold, he said.

Thus far this year, the price of gold has increased 27 percent and it is moving toward its 10th-straight year of annual gains. By the end of next year, the precious metal could be worth $1,690 per troy ounce, according to a report by Goldman Sachs.

This news article is independently provided by Brafton and does not represent the views or opinions of Goldline International, Inc. Although the information in this news alert has been obtained from sources believed to be reliable, Goldline does not guar­antee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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