Gold demand dropped 15% to its four-year low in 2013 as American investors snappily trimmed holdings of the precious metal, the World Gold Council said on Tuesday. Last year, the bullion sustained its largest drop since 1981, losing more than a quarter of its value as decade-long bull rally ended. Since then, it has regained some ground, ascending 9% this year to $1,327 per troy ounce on Monday.
The industry lobby group added the demand in 2013 attenuated to 3,756 tonnes. Demand between the three months to December fell to 858 tonnes, down 29% from last year and the least since the second quarter of 2009.
The data encompass investor buying of coins, bars, and exchange-traded funds, as well as central bank purchases and demand from the electronics and jewelery industries.
The profit dive in demand is because of the sell-off by gold-backed ETFs, which last year resulted to discarding of 881 tonnes of bullion – more than four times the output Barrick Gold, the world’s largest miner. US investors, pleased by the recovery in the economy, were accountable for about 70% of the ETF sales, said WGC Managing Director Marcus Grubb.
“Some fund managers perceived that they needed less insurance against risk in their portfolios,” Grubb added. Though gold purchases by central banks dropped to almost 369 tonnes, it was the fourth consecutive year that net demand in the sector was optimistic. The WGC anticipates more central bank purchasing this year. The amount of gold utilized in technology, including electronics, sank by 1% last year.
But demand from consumers advanced by 21% to a new peak of 3,864 tonnes. Jewelery listed its greatest volume increase since 1997, while demand for coins and small gold bars bounced 28%. China topped the list, surpassing India to become to world’s biggest gold market as retail investors took advantage of the dropping price to purchase bullion. Even in the US, demand for coins, bars, and jewelery went up 18%, stressing the various sentiments of small and large investors.
The stable increase in the gold price this year has perked up those still invested in the metal. This includes the hedge fund Paulson & Co, led by long-time gold bull John Paulson, which kept its more than $1 billion stake in the SPDR Gold Trust – the world’s largest gold ETF – during the past three months of 2013, based on a quarterly filing last Friday.
Other data reflected the week to February 11, money managers and hedge funds rose their stake the gold price would increase, said the Commodity Futures Trading Commission in the US, showing the most bullish position in three months. Though the WGC does not make predictions about the price, Grubb was positive on the outcome for gold in 2014.
The material has been provided by InstaForex Company – www.instaforex.com
Gold demand dropped 15% to its four-year low in 2013 as American investors snappily trimmed holdings of the precious metal, the World Gold Council said on Tuesday. Last year, the bullion sustained its largest drop since 1981, losing more than a quarter of its value as decade-long bull rally ended. Since then, it has regained some ground, ascending 9% this year to $1,327 per troy ounce on Monday.
The industry lobby group added the demand in 2013 attenuated to 3,756 tonnes. Demand between the three months to December fell to 858 tonnes, down 29% from last year and the least since the second quarter of 2009.
The data encompass investor buying of coins, bars, and exchange-traded funds, as well as central bank purchases and demand from the electronics and jewelery industries.
The profit dive in demand is because of the sell-off by gold-backed ETFs, which last year resulted to discarding of 881 tonnes of bullion – more than four times the output Barrick Gold, the world’s largest miner. US investors, pleased by the recovery in the economy, were accountable for about 70% of the ETF sales, said WGC Managing Director Marcus Grubb.
“Some fund managers perceived that they needed less insurance against risk in their portfolios,” Grubb added. Though gold purchases by central banks dropped to almost 369 tonnes, it was the fourth consecutive year that net demand in the sector was optimistic. The WGC anticipates more central bank purchasing this year. The amount of gold utilized in technology, including electronics, sank by 1% last year.
But demand from consumers advanced by 21% to a new peak of 3,864 tonnes. Jewelery listed its greatest volume increase since 1997, while demand for coins and small gold bars bounced 28%. China topped the list, surpassing India to become to world’s biggest gold market as retail investors took advantage of the dropping price to purchase bullion. Even in the US, demand for coins, bars, and jewelery went up 18%, stressing the various sentiments of small and large investors.
The stable increase in the gold price this year has perked up those still invested in the metal. This includes the hedge fund Paulson & Co, led by long-time gold bull John Paulson, which kept its more than $1 billion stake in the SPDR Gold Trust – the world’s largest gold ETF – during the past three months of 2013, based on a quarterly filing last Friday.
Other data reflected the week to February 11, money managers and hedge funds rose their stake the gold price would increase, said the Commodity Futures Trading Commission in the US, showing the most bullish position in three months. Though the WGC does not make predictions about the price, Grubb was positive on the outcome for gold in 2014.
The material has been provided by InstaForex Company – www.instaforex.com
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