Gold jewelry buying soars after price dip

Sales of gold to jewelers have seen a significant increase since prices of the yellow metal experienced a correction earlier this week.

Jewelers in China, Vietnam and Japan in particular are rushing to buy gold after prices dipped following the breach of the $1,000 an ounce mark, Reuters reports.

Albert Cheng, Far East managing director for the World Gold Council, said that Vietnam's surge in demand for gold bullion can also be attributed to other factors.

"I guess in Vietnam there's a lack of investment tools and the stock market is very jittery. So people would better put money in gold," he remarked.

"It's almost the end of the first quarter. The physical demand is very good."

Despite the gold price dip, a number of analysts are continuing to forecast good long-term prospects for the precious metal.

And with gold mining output continuing to fall in some parts of the world - most notably in Zimbabwe, according to allafrica.com - those with gold investments may do well to look further into the future before taking any action now.

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