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.

For the very best Gold Prices – live online – plus secure storage of your physical property in Zurich, Switzerland for one-third the cost of an exchange-traded gold fund, click through and register with BullionVault now...


See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals