Gold News

Gold Investment demand up 46 percent in Q2

The head of the World Gold Council (WGC) claimed today (August 19th) that Gold Investment is still proving popular despite some negative factors for the metal.

In its latest Gold Demand Trends report, compiled by GFMS, the marketing organization revealed that investment demand increased by 46 percent on a year-on-year basis in Q2 2009.

Now WGC chief executive Aram Shishmanian has explained that the figures underline the strength of support for Gold Buying despite high local prices and waning industrial demand during the economic crisis.

"This is another excellent quarter for gold demand as gold's unique properties and broad demand and supply base continue to sustain a vibrant market and support the price," he said.

"Investment demand, in particular, witnessed a strong quarter and we believe this indicates a growing recognition of gold as an important and independent asset class."

Gold has also shown itself to move in the same direction as oil prices, particularly in an economic environment where many market observers believe inflation to be on the cards.

Crude has improved substantially in recent weeks and Darren Heathcote, head of trading at Investec Australia, explained that this trend should continue to support gold prices in the future.

"The usual influence in terms of oil will have some kind of play because you know it's part of all the inflationary picture and people are still predicting high inflation further out," he told Reuters.

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