11 Aug Gold investment hits highest ever level
Gold investment has hit record first-half levels this year at 2,335 tonnes, according to a World Gold Council Report covering the first half of 2016.
The metal is up 27% or almost US$300 an ounce.
This has been the best first half performance since the 1980’s when inflation-adjust gold price surpassed $2,000 an ounce.
It has been almost totally driven by investors in physical gold-backed exchange funds.
Overall global gold demand hit 1,050 tonnes in the second quarter of 2016, down from the March quarter, but a 15% rise compared to the same time last year.
Juan Carlos Artigas, director of investment research at the WGC said the continued strong investment was fuelled by increasing global economic and policy uncertainty, which was only exacerbated by the unexpected outcome of the UK referendum.
“While there is some evidence of momentum buying, investors are primarily initiating or rebuilding strategic, long term holdings after the wash-out of positions since early 2013.
“Pent up demand among investors who have been looking for a way back in, found the necessary catalyst to do so this year.”