New Gold Investment demand is currently outpacing global output of newly mined metal, reports Bloomberg News.
Exchange-traded trust funds alone – backed by Gold Bullion holdings – added 41.7 tonnes to their hoards in the week-ending May 14th, says Bloomberg News.
That matches weekly average output from the world's 17 largest Gold Mining nations of 41.6 tons in 2009, according to data from London's GFMS Ltd. consultancy.
On top of exchange-traded trust fund demand, "People are buying Krugerrands like crazy," says Frank Ziegler, head of Germany's leading BayernLB precious metals wholesalers, to the Financial Times.
The US Mint says it sold 142,500 one-ounce Eagle Gold Coins in the first 3 weeks of May.
"All of the turmoil and problems we've seen in Europe is just another reminder that there's a lot of value in gold as a safe haven," says Evan Smith, co-manager of $2 billion in funds at US Global Investors Inc. in California, speaking to Bloomberg.
"You could see gold go up another $1000."
Gold Investment demand typically accounts for 20% of total world demand, says data from marketing group the World Gold Council. That proportion almost doubled in 2009.
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