Demand for Gold Rises as World Price Falls

Gold prices in Phnom Penh have plummeted by almost a quarter in the past six months as international prices dropped, sparking a rush on buying gold locally, traders said Tuesday. Gold was selling at $1,540 per damlung (26.67 damlung is equal to 1 kg of gold) at the Ly Hour exchange on Tuesday, a drop of 24.5 percent compared with January 3, when the price quoted at the exchange was $2,040. A member of staff at Phnom Penh’s Ly Hour exchange, who declined to give her name, said that the local price drop was due to the international gold market. ... The Ly Hour staff member said that in Cambodia the dip in price had led to a 20 percent rise in gold buying in the past three months, with many speculators looking to profit if and when the price goes back up. ... Gold is widely seen as a safe investment, and many Cambodians use the commodity to store their wealth rather than using banks. “Some people buy gold to keep for the future for a profit because they still don’t have trust, and they are afraid they will lose out if they buy dollars,” the Ly Hour staff member said. ...

http://www.cambodiadaily.com/business/demand-for-gold-rises-as-world-price-falls-33097/