By Esther Teo

THE soaring price of gold - well over US$1,000 - has not sparked a rush of buyers to local traders, but it has tempted a few hopeful sellers to try to offload their hoardings.

Six jewellers in Chinatown told The Straits Times yesterday that they have had more inquiries from people about selling their precious metal but no one is being rushed off their feet.

'There has been a slight increase but I think most people are still holding on to their gold as they think that prices might still rise,' said Madam Wong, a saleswoman at Golden Watch Gold & Jewellery at People's Park Complex.

However, Poh Heng Jewellery has observed increased gold purchases across its 13 outlets. 'Gold has always been a proven method of preserving wealth as it keeps pace with inflation and stays independent of key economic indicators,' said its director, Ms Chng Hwee Siang.

The sales manager of Poh Seng Jewellery at New Bridge Road, Mr Patrick Yeo, told The Straits Times on Thursday that the shop has seen a 20 per cent to 30 per cent increase in the number of people selling gold over the past year.

Most of the jewellers said the weak economy has hit purchasing power so people are not able to splash out on gold, despite the temptation of its surging value.

Gold's value has risen about 19 per cent this year although the Straits Times Index of shares has shot up 45 per cent in the same period.

Sales executive Joe Teng at Chung Hwa Jade and Jewellery feels that with gold already gradually increasing in price since last October, those leaning towards selling would have already done so and any increase in customers selling their gold is not likely.

Most of the customers The Straits Times spoke to were buying gold for special occasions such as weddings and birthdays rather than for investment.

The Singapore Jewellers Association's recommended price for gold is $57 a gram. It issues recommendation as a guideline to prevent profiteering.

This article was first published in The Straits Times.