New Zealand is poised for another gold rush but it's unlikely anyone will be digging for their fortunes.
As gold prices hit record levels, it's overseas buyers with money to spare who are turning their dollars into Kiwi gold.
New Zealand Mint head bullion trader Mike O'Kane said as the world recession deepened, more people wanted to safeguard their cash and saw the precious metal as an insurance policy.
The price of gold has doubled in the past two years and last week hit an all-time high, reaching $1745 an ounce.
O'Kane said that with the failures of large US investment banks, such as Bear Stearns and Lehman Brothers, demand for New Zealand gold increased. The failures coincided with NZ Mint doing a month's worth of transactions each day.
"We've just started to see another surge in demand through fear and worry."
During the past two weeks one US buyer had bought $1 million in gold - about 570 coins - and was contracted to buy another $1m during the next fortnight.
"There's an Asian couple flying over to buy $500,000 worth," said O'Kane. "They're going to take that away with them."
*The bull market is about to begin, when the general population sees the opportunities up ahead with precious metals, the price is going to go up, so it is time to invest in this metal as early as now."
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