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/