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The price of gold has hit an all-time high reaching $US880 ($NZ1,130) per ounce on Tuesday night and it climbed another $US10 yesterday afternoon to $US890.
New Zealand Mint bullion dealer Mike O'Kane said yesterday that gold was typically seen as a safe haven investment in times of recession and financial volatility.
A broader range of Kiwi investors were now investing in gold whereas historically it had usually been immigrants and overseas clients.
Gold in New Zealand had not been a big investment since the 1980s but overseas it had consistently been a popular one.
"What we are seeing this last year is a lot broader range of people," O'Kane said.
Gold trades at New Zealand Mint had jumped 300 per cent since 2006. It was probably the biggest trader in the country, he said.
The global gold price has risen 26 per cent in the past 12 months due primarily to uncertainty in world markets.
Investors usually bought gold coins. The beauty of them was that they were easily sold again in many places.
"We have a lot more people, especially with the price jumping, selling back to us."
A gold coin was one troy ounce, 31.1g, which yesterday cost $NZ1250.
"We're living in turbulent times and that's when people migrate to gold which is seen as a safe haven investment.
"People are turning to gold as the US economy weakens, oil prices continue to rise and global political tensions increase," O'Kane said.
"Add to that the huge demand for gold in China and India and you can understand why the price is sky high."
Demand in China was increasing up to 30 per cent a year and in the Middle East about 10 per cent a year.
"Most commentators say they cannot see any drop in the price while the global situation remains tense and the US dollar so low," O'Kane said.
It had been more than 28 years since the gold price was anywhere near yesterday's levels when it reached $US850 in 1980.
However, adjusted for inflation the 1980 price was the equivalent of more than $US1600 today, O'Kane said.
