Gold fever hits Hong Kong as investors hedge against inflation amid record rally

Hongkongers are rushing to gold stores to buy and sell the precious metal, which has surged by nearly 50 per cent this year to record high prices.

Analysts suggest that many investors are seeking a trusted asset to guard against currency devaluation amid global uncertainties.

At Lee Cheong Gold Dealers in Sheung Wan on Friday, a steady stream of customers entered the store to trade gold and other precious metals.

Many of them told the Post they wanted to diversify their asset portfolio and counter currency depreciation.

Among them was a saleswoman in her thirties, surnamed Kwok, who bought one tael of gold (37.51 grams or 1.32 ounces) for the first time with two friends.

She viewed the purchase as a long-term investment for her 18-month-old son.