Demand for gold exchange-traded funds (ETFs) soared in the third quarter of 2007, according to industry experts.
A Gold Demand Trends report from the World Gold Council (WGC) showed that, within the context of a 30 per cent year-on-year boom in quarterly gold demand, ETF investment soared to new highs.
ETF demand saw a 617 per cent year-on-year increases to reach 138 tonnes, according to the report, topping event the fourth quarter of 2004 when leading ETF streetTRACKS Gold Shares was launched.
Meanwhile commodities market research group CPM said that the ETF boom was extending into the current quarter, with the world's leading gold ETFs in October holding a record 27.17 million ounces, well above last year's October level.
ResourceInvestor.com quoted the WGC report's comments on the upturn, after a sluggish first half of the year for ETFs and for gold more generally.
"The third quarter saw ETF and institutional investors return. In July and August, investor interest was still moderate but in September, following the start of the financial crisis, it soared," stated the report.
"Net inflows into ETFs and similar products in Q3 were a quarterly record. The inflow of investors caused the price to climb rapidly from the second week of September," it added.