SOARING gold prices are eroding family traditions and depleting family heirlooms.

Gold is hovering at a record high of around US$955 ($1,330) an ounce due to strong demand from investors seeking a safe haven from a weak US dollar and fears of a looming recession in the US, reported Reuters.

The custom of giving babies gold is fast disappearing in South Korea as guests at first birthday parties turn to alternatives, reported the International Herald Tribune.

Mr Moon Sang Soo, 34, recalled how guests at his first birthday party brought the traditional baby present: a 24-carat gold ring.

When he got a place in college, his parents melted 20 of these rings and recast the gold into a mini crown. It's now on display in his living room.

Most homes have five to 20 rings stashed away for each child.

But with the price of gold more than twice that of three years ago, babies are getting fewer rings.

At Mr Moon's son's first birthday party in December, only half the guests brought a ring. The rest gave cash.

Said journalist Lee Yon Jeong: 'A couple of months ago, I paid 95,000 won ($140) for a baby gold ring. I thought it was too expensive.'

HURTING JEWELLERS

Sentiments like his are hurting business for jewellers.

According to the Korea Jewellery Association, sales of baby rings are down by half since the cost of a typical ring exceeded 100,000 won.

To lure customers, jewellers now offer alternatives like lightweight baby necklaces or bracelets with bells.

But Mr Moon would have preferred baby gifts of gold as they were more likely to be passed on to his son.

He said: 'It's less liquid than cash. So I can keep myself from spending it.'

In Thailand, the sluggish economy and record gold prices have prompted many elderly Thais to cash in family heirlooms, reported Reuters.

Grandmother Pannee Sae Kaow was seen outside a gold shop in Bangkok clutching a tarnished gold necklace given to her years ago by her mother.

'The economy has left me no choice but to sell it,' said the 78-year-old, who makes just 6,000 baht ($185) a month from a small dumpling stall.

Dealers say gold is simply too expensive for most Thais.

Said gold trader Montree: 'There aren't many customers at the moment - except for those coming to sell.

'Many people can't afford gold so we now ship it to elsewhere in Asia.'

This article was first published by The New Paper on Mar 1, 2008