With the recent dip in the gold price reports from Japan indicate that the Japanese have been buying gold bullion bars in record time.

With analysts forecasting the price of gold to continue moving upwards, investors in Japan are jumping on the gold bandwagon. One physical dealer in Japan said “we can see good buying from the general public. That is why the market is at a premium”.

Investing in gold bullion, whether it is in Japan or any other country is a long term strategy. With the current financial uncertainties globally, gold appears to be a good insurance policy. If Sovereign debts in Europe continue to grow there is a possibility that the whole system could collapse. The only way to protect yourself is to buy gold.

Reports from China suggest that a significant amount of gold has been discovered in the Junnggar area of Xinjiang. This is the largest amount to be found in this area in the last 20 years.

It is estimated that 26 tonnes of gold bullion has been discovered which is worth around 4 billion Yuan or £404 million. China is the world’s largest gold producer, overtaking South Africa who had held the position since 1905.

Over the past decade gold output in China has risen by 70% as demand for gold globally has increased. As more investors look to buy gold mining companies are investing more in gold production. The main foreign investing in gold mining in China comes from Canada and Australia.

 With the much hyped FIFA World Cup fast approaching, host country South Africa is preparing itself for an influx of football supporters. Countries from around the world are all competing for the renowned golden World Cup trophy.

The original Jules Rimet trophy was in use during 1930-1970. It was made of 18 carat gold and it depicted two people holding up the earth. The World Cup was famously stolen a few months before the memorable 1966 World Cup in England.

A replacement FIFA World Cup trophy was introduced in 1970 and is still in use today. It is made of 18 carat gold bullion with a solid gold base. The trophy has now made its way to South Africa and has been presented to President Nelson Mandela. Chief Executive Danny Jordan said “it is quite an emotional and joyful moment to be back bringing the trophy to him, a symbol of world football with a global symbol of humanity”.

The gold bullion market in India remains bullish as more investors demand gold. The World Gold Council highlighted in a recent report, that there are over 10 million weddings in India per year and gold traditionally plays a big role. 75% of domestic gold bullion in India is used for jewellery.

Apart from buying gold for weddings Indians are investing in great numbers in gold bullion as an insurance against the present and future economic uncertainties. Similarly analysts are finding this is a common occurrence the world over as investors are losing confidence in traditional investments, such as stocks and shares and paper currencies. Gold is becoming a popular form of investment for its ability to stay strong in a crisis.

The World Gold council also added in their report that “India remains the cornerstone of the global gold physical market”. With rising incomes in India and investors being concerned about their assets, investing in gold bullion makes perfect financial sense.

Figures of gold bullion sales in Dubai show that there has been a record amount of investors buying gold as concerns over the economic uncertainties worldwide take hold. Since the beginning of 2009 gold sales in Dubai have risen by 50%.

Business man Firoz Merchant says that “there is a lot of uncertainty..because of that consumers and investors are very comfortable investing money in gold; Gold seems like the only investment at present that can give a good return as investors are nervous about the uncertainty around paper currencies”.

The price of gold is predicted by analysts to climb in the long term but in the short term it still remains volatile. Long term investment would seem the wise option and the investors of Dubai are following suit.

Reports from Greece indicate that there has been a flurry of investors in Greece buying gold coins as a hedge against the current economic and political uncertainty in the country and in the rest of the world.

Every day, The Bank of Greece has announced, they have been selling over 700 gold bullion coins. The most popular of which appears to be the British Sovereign. Greek investors are panic buying as the $1 trillion aid package introduced by the European Union may not achieve what it set out to do and Greece could fall into further debt. The best option, as Greek investors see it is to buy gold as a safe haven for their assets.

Gold investments have soared in recent months and investors appear to be losing confidence in paper currencies and other investments such as stocks and shares. Greek buyers are feeling vulnerable. Other mints have also reported an increase in sales of gold coins and gold bullion bars including the US Mint and the Royal Mint in the UK.

Always one for a fashion first, Versace has launched the ultimate fashion phone. This hand assembled phone comes with an 18 carat gold finish, satisfying the current trend to buy gold luxuries.

The front of the phone boosts the Versace logo with a 3inch crystal touch screen. Versace worked in conjunction with French manufacturers Modelabs to create this new and unique phone. With a 3G camera, Dolby stereo sound and email facilities this ultra modern phone possesses all the accessories that phone users have come to expect.

The Chief Executive of Versace, Gian Giacomo Ferraris said “our team has worked well with our partners at Modelabs to manufacture a very innovative product which perfectly blends luxury metals, craftsmanship and advanced technologies of LG”.

Gold looks like it is moving in the right direction again after it had taken a dip over the past few weeks. The price of gold bullion ended on $1,194 at the close of market yesterday.

More investors have been buying gold recently as a safe haven for their assets following the current political and economic uncertainties. The Bank of Spain announced over the weekend it had taken control of CajaSur, one of Spain’s major Banks after a failed merger, Once again, indecision has been put in the mind of investors globally; they have lost confidence in the investment of paper currencies, especially the Euro. This situation also raises doubts as to whether the euro nations can repay their monetary debts and makes investors nervous and apprehensive.

Craig Ross, Vice President of ApexFutures summed up the situation well when he said “everyone is looking to buy gold. Today’s excuse is the uneasiness of the Euro”.

Buying accelerated as the MSCI World Index of 23 developed nations’ stocks tumbled as much as 16 percent since mid-April and the euro weakened to a four-year low against the dollar. Holders of ETPs, including George Soros and John Paulson, accumulated a record 1,938 tons by May 21, eclipsing all but four of the biggest central-bank holdings

Just a few months back, Bloomberg(among others) was running derisive articles about John Paulson’s new gold fund, labeling it a folly. That’s in sharp contrast to the Bloombergarticle above, which is pro-gold from top to bottom. This sort of meme will be foundational in causing big and small investors alike to wrap their heads around the idea that, yes, gold can return to its former inflation-adjusted high of $2,266. And it can do so even in the absence of the roaring price inflation that we expect down the road.

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