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Gold Investment demand 'to outstrip gold jewelry demand' in 2009

A senior figure at the World Gold Council (WGC) has today (April 23rd) claimed that Gold Investment demand is set to soar over the course of 2009.

In 2008, Gold Investment demand accounted for 30 percent of overall gold demand, while jewelry demand contributed approximately 58 per cent of the total.

However, Marcus Grubb, managing director of the WGC, has explained that concerns over the global economy and a desire to diversify look set to reverse that trend.

Speaking at an ETF securities seminar in London, he commented: "The structure of the gold market is changing. In the first quarter I think investment demand could be higher than 30 percent."

Mr. Grubb's comments come after Heiko Seibel, director of research at Munich-based firm CM-Equity AG, claimed last week that gold prices could hit $1,200 per ounce by the end of the year.

"We should see a culmination of massive price weakness in stocks within weeks, which will cause gold to reverse its current trend to establish new highs beyond $1,000 early in the third quarter of this year - maybe even testing the $1,200 mark," he told Gold Investing News.

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