Capital Gold Group, Inc. - 2008 Asia Tour Brings Gold Investment Opportunities to China
LOS ANGELES, May 13 /PRNewswire/ -- Capital Gold Group, Inc. is initiating opportunities in China to co-venture with existing gold producers and distributors to bring gold investments to the average investor.
This new initiative comes on the heels of Capital Gold Group's 2007 Asia Tour "Gold Investing in the Global Economy" presented in major cities including Hong Kong, Bangkok, Singapore, Manila and Jakarta. The 2008 Asia Gold Tour is an alliance with agents from countries throughout Asia to bring investor grade gold into emerging economies. Capital Gold Group, in association with HSBC (Hong Kong and Shanghai Banking Corporation) is offering special accounts for physical gold. The Hong Kong and Shanghai Banking Corporation Limited was established in 1865 to finance the growing trade between China and Europe and is one the largest banks in the world.
The ban on private ownership of gold in China, lifted in 2002, lead to the opening of the Shanghai Gold Exchange in 2004, and the Shanghai Futures Exchange earlier this year, and has placed increased pressure on gold supply, as thousands of investors created strong momentum in the Asia gold market. Inflationary pressure from the booming Chinese economy and a 41-percent slump in the domestic stock market this year have added momentum to China's drive to buy gold. Behind the remarkable growth lies a deep Chinese traditional appreciation of the precious metal as a hedge against social and economic risks. "The stock market is not as good as before, and people do not feel safe parking all their savings in banks," said Lin Yuhui, an analyst with the China International Futures in the southern city of Shenzhen. "So they tend to buy gold as a means to hedge inflationary risks." Today, investors worldwide are opening their minds and their portfolios to investment strategies using physical gold as a safe-haven amid the ongoing credit crisis, increased inflation fears, and a shrinking U.S. Dollar. Strong fundamentals such as increased investor demand, limited supply and a lack of new production create a solid foundation for investment. Scaling back of exploration and the rising cost of extraction is expected to cause gold production to fall 10-15% over the next five years. Chinese consumers, however, are not deterred by rising prices. Rather, they increasingly view gold as not only a means to protect wealth but also as an efficient part of their investment portfolio. "In fact, higher gold prices helped to stimulate investment purchases of the metal ... as consumers were attracted by the strong returns generated by the metal," the World Gold Council said in a recent report about the China market. The Shanghai Gold Exchange and the Shanghai Futures Exchange are reporting new record volumes of gold investment activity amid rising gold prices worldwide. Capital Gold Group's President and CEO, Jonathan Rose, is a recognized speaker and commentator for worldwide gold markets, including the United States, Hong Kong, Singapore, China, India, and Europe. He is heard on syndicated talk radio throughout the U.S. Capital Gold Group, Inc. has main offices in Los Angeles and London. First Call Analyst:
CONTACT: Brenda Whitman of Capital Gold Group, Inc., 1-800-597-1330, Web site: http://www.safeasgold.com/
2008-05-13 20:03:01 0360910 PRNEWSWIRE
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