| Current Gold price USD/oz | Current Silver price USD/oz | ||
|---|---|---|---|
| 1255.90 (Ask) | 1254.90 (Bid) | 20.03 (Ask) | 20.01 (Bid) |
According to a recent press release by the World Gold Council, the demand for gold pushed trough US$ 100 billion during 2008. With the backdrop of the global financial crisis, investors moved into safer investment instruments, turning to gold and cash as fears of bank failures spread across the globe.
During 2008, the demand for gold grew 29% compared to the previous year with investments of $102b in gold. According to World Gold Council’s (“WGC”) Gold Demand Trends, identifiable gold demand in tonnage terms rose 4% on previous year levels to 3,659 tones.
The most interesting trend across the year was the reawakening of investor interest in the holding of physical gold. Demand for bars and coins rose 87% over the year with shortages reported across many parts of the globe. According to Aram Shishmanian, CEO of World Gold Council, “These figures confirm that investors around the world recognise the benefits of holding gold during this time of unprecedented global financial crisis, recession and the spectre of future Inflation.”
Mr. Shishmanian pointed out something that we noted at ]]-->]]-->www.silvergoltrade.com]]-->]]--> saying that “whilst current market conditions have impacted consumer spending on jewellery, purchasers in many of the key gold markets understand gold’s intrinsic investment value and continue to buy”.
In fact, at www.silvergoldtrade.com we have noticed that the demand for gold bullion from small investors (those buying less than 10 ounces per purchase) increased exponentially, while we have seen anecdotal evidence that some dealers had trouble getting hold of enough Krugerrands and Eagles.
The biggest source of growth in demand for gold in Q4 was investment. Identifiable investment demand reached 399 tonnes, up from 141 tonnes in Q4 2007, a rise of 182%. The main source of this increase was net retail investment, which rose 396% from 61 tonnes in Q4 2007 to 304 tonnes in Q4 2008. The most dramatic surge was in Europe, where bar and coin demand increased from just 9 tonnes in Q4 2007 to 114 tonnes in Q4 2008, a 1,170% increase. ETF holdings broke new records during the quarter. Although the net quarterly inflow was down on the levels of the previous quarter, the growth rate on Q4 2007 was a strong 18%.
