Global demand for gold on the upswing!
LONDON, England - August 26, 2010 - Economic uncertainties, together with China’s push to get its citizens to buy more gold, should keep demand for the precious metal strong through the year, according to the World Gold Council.
Global demand for bullion during the second quarter increased by 36%, to 1,050 tonnes, driven by investors who sought both diversification from corporate stocks and a haven during a period of rising sovereign debt and unstable economic activity.
Investment in gold more than doubled in the three months ended June 30 from the same period a year earlier, thanks largely to a surge in buying of shares of bullion exchange-traded funds. Net retail investment rose by 29% while purchases of gold ETF shares rocketed 414%, the London-based council said.
Investors purchased 291.3 tonnes of gold in ETFs during the second quarter, the second-largest inflow to date, bringing total holdings to more than 2,000 tonnes, worth more than $81-billion (U.S.). The lion’s share of that amount, more than $50-billion, lies in the SPDR Gold Shares trust, which was created by the World Gold Council itself, though a subsidiary, in November of 2004.
