OREANDA-NEWS. September 27, 2011. As the price of gold rises, more active interest of investors towards this precious metal is observed.  According to the data of Bank SNORAS, the bank clients' investments in gold during this year alone comprised more than LTL 6.4 million and, in comparison to the appropriate period last year, they doubled, reported the press-centre of Bank SNORAS.

“Gold price has been on the rise for eleven years in a row, and it is considered one of the most successful investments this year. Therefore, both foreign and Lithuanian investors actively buy this precious metal.  Just within this year, in comparison to the appropriate period last year, Bank SNORAS clients acquired 50 kilograms or by one-fifth more gold, while the sum of the investments doubled. The demand for gold is increased not only by investors but also by jewellery manufacturers and the central banks which thereby increase their reserves,” states Remigijus Bartaska, the director of Bank SNORAS Investment Business Division.

According to him, the interest of Lithuanian investors is also shown by the fact that Bank SNORAS, which started trade with gold two years ago, during this year alone has sold half of the entire gold purchased by the clients, and the income obtained from this activity increased accordingly. Within two years, Bank SNORAS clients acquired more than 100 kilograms of gold, while investments in the precious metal exceeded LTL 12 million.

Among Bank SNORAS clients, gold is most often purchased by natural persons who are residents of the Republic of Lithuania. Most frequently the bank customers – both residents and companies – buy the investment gold bars whose weight is from 50 up to 100 grams.   

According to the director of Investment Business Division of Bank SNORAS, usually the crucial impact on the gold purchase boom is made by the situation in financial markets and public finances. World Gold Council forecasts that the demand for gold should remain due to the increasing inflation and uncertain prospects of recovery of the Western European economy.

According to R. Bartaska, investors are advised to allocate to precious metals up to 5-8 per cent of their entire investment portfolio.