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.
SOURCE Capital Gold Group, Inc.
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Related links:
http://www.safeasgold.com
http://www.IRAgold.com http://www.thecapitalgoldgroup.com
CONTACT:
Brenda Whitman of Capital Gold Group, Inc.,
1-800-597-1330, ext. 295
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