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year of the pig

[KOGA]

Investment-grade gold bullion marking the coming "Year of the Pig" will go on sale in the city today to quench investors' and collectors' thirst for the precious metal. The bullion, which can be sold back to the issuer, is expected to prove a popular investment alternative amid the current sluggish property market and low bank deposit rates. China Gold Coin Inc, the country's sole wholesaler of gold bars and coins, is set to issue 300 kilograms of gold bars celebrating the coming Chinese lunar new year today. The gold will be sold in bars ranging from 50 to 1,000 grams, with prices hovering around 185 yuan (US$23.12) a gram. Up to 70 percent of the gold bars have already been sold, according to Chen Kui, vice general manager of Shanghai Gold Coin Investment Co. The company started selling China's first investment-grade bullion in 2002 to mark the "Year of the Goat." Buyers can cash the bullion in at any time they want, with buy-back prices based on gold prices in local and international markets minus a two percent commission fee. The annual sale is always a success due to the metal's reputation as a safe haven and the buy-back option. Gold Coin will issue three tons of gold bars this year, an increase of 21 percent from last year. While gold prices have jumped 72 percent since the first batch of bars went on sale in 2002, few buyers have sold them back. "Most buyers look at the bullion as a long-term investment rather than a means to make a short-term profit," Chen said yesterday. Source:Shanghai Daily