The Commercial Bank of China’s precious metals department claims that the demand for gold investments could increase by ten per cent this year. The growing demand for commodities like gold, silver and timber is down to a desire among investors to seek safe havens from the ongoing Eurozone crisis.
This is according to AAA’s analysis partner, Anthony Johnson. The seasoned asset manager said, “individual investors and institutional investors alike are all looking at ways of diversifying their portfolios to protect against risk.”
Zheng Zhiguang, the general manager of the Commercial Bank of China’s precious metals department, backed up AAA’s view. He told the Economic Times: "Investors here want to hold part of their assets in gold to hedge for the risks, especially now that the financial crisis has evolved into a sovereign crisis.”
The World Gold Council forecasts that China will exceed India this year as the largest market for gold bullion as more and more of the country’s new wealthy population seek safe havens for their cash. Mr Zhiguang added that Chinese investors are facing volatile equity markets and a poor real estate investment opportunities and are looking towards gold as a result.
AAA is an advocate of many varieties of alternative investments and claims that they are growing in popularity since the global economic crisis. “It’s not difficult to see why many people prefer to buy tangible assets of stocks and shares these days,” claimed Mr Johnson. He added, “Assets like timber, gold and fine wine have consistently outperformed the equity markets and also provide investors with an ethical choice.”
AAA advocates ethical investment, through projects such as the sustainable plantations run by Greenwood Management, which offers investors the chance to directly invest in timberland for as little as EUR10,000.
About Alternative Asset Analysis:
The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.
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