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Gold Investment Popular Hedge for Big Asian Investors

Gold Investment is the second most popular inflation hedge for wealthy Asian investors, according to a survey by Barclays Capital.

The survey, which covered clients of wealth management organizations with combined assets under management of $5 trillion, found that 74% of those polled revealed that clients were using equities as an inflation hedge, while more than 50% are looking into Gold Investment for the same purpose.

"[The survey] shows that an overwhelming majority of participants use equities as an inflation hedge with gold coming in second," said Peter Hu, Singapore-based head of investor solutions for Asia ex-Japan at Barclays Capital.

The findings contrast with those of another Barclays Capital survey last month. Barclays Capital's annual survey of institutional investors, which coincided with its seventh annual Commodities Investor Conference in London, showed that while investors were bullish on commodities, they predicted Gold Prices would not repeat their strong performance of 2010.

Gold Investment has risen strongly in Asia in recent years, especially in China. A report published by the World Gold Council in February showed that Chinese demand for Gold Bullion rose 70% year-on-year in 2010.

An official report due Friday is expected to show China's inflation climbed to 5.4% in March, the highest for 32 months.

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