Gold News

Gold Investment overtakes jewelry demand

Global demand for Gold Investment has overtaken that of jewelry for the first time since the 1980s, according to the GFMS.

The respected metal consultancy's latest Gold Survey revealed that Buying Gold is becoming an increasingly popular activity among investors looking to preserve their wealth from the financial crisis that has gripped the world in recent months.

It reported that a recovery in the jewelry market requires a drop in Gold Prices, something it does not expect to occur in the near future.

Demand for jewelry was found to have fallen 20 percent to 1,759 tonnes last year.

Speaking to Reuters, Philip Klapwijk, chairman of GFMS, said: "An important factor in the US market has been the development of new capacity of the mobilization of jewelry scrap," such as the popularity of "cash-for-gold" businesses.

If Gold Prices do eventually fall, it is likely that new demand will become apparent, primarily from Chinese investors, according to respected analyst Marc Faber.

The author of the Doom, Gloom and Boom report expects a number of investors in the country are waiting for the price to fall below $1,050.

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