Gold investment fuels record demand

The World Gold Council (WGC) has published a report which suggests that demand for gold reached record levels during the second quarter.

The latest edition of 'Gold Demand Trends' has revealed that global dollar demand hit $21.2 billion, some nine per cent higher than the figure for the equivalent period in 2007.

Investment demand was the main driving factor, with an increase of 29 per cent to $3.5 billion during the quarter, while Vietnam, China, the US and Egypt all posted strong figures.

Furthermore, the study suggested that in the longer-term, investing in gold will continue to be robust, particularly as the sense of economic and financial gloom continues to hang over the world.

The report also revealed that while trends in retail demand were varied, China, the US and Vietnam all registered strong year-on-year increases, due to concerns about the economic climate, rising inflation and equity market weakness.

Want to Buy Gold but unsure how to do it? For dealing spreads of $3 per ounce – plus secure, professional storage in Zurich, Switzerland for just 0.12% per year – click through to BullionVault now...