Latest data from mining-backed marketing group the World Gold Council says global Gold Investment demand was "very strong" during the first 3 months of 2010.
What it calls the "gathering storm" of Eurozone government-debt fears makes further growth likely in the current quarter too, the WGC says.
"Currently, European Gold Investment demand is exceptionally strong, especially from German and Swiss investors. This is mainly attributable to concern over public debt levels in the Eurozone and the potential inflationary impact of the European Central Bank's announcement of a $1trn (€750bn) rescue package.
The WGC's new report – Gold Demand Trends – forecasts a rise in global gold-mining output in response to the current surge in Gold Investment demand.
But "scrap gold" flows – where households sell unwanted jewelry to raise cash – would require "a considerably higher price...to flush out less readily available supply."
Ahead of this month's record demand for Gold Coins, small bars and ETFs, less visible Allocated Gold positions held by financial institutions and wealthy individuals in the professional wholesale market "generally continued to be very firmly held," the World Gold Council said in its Investment Digest of April.
"Among the non-Western markets," it now adds, "India remains the corner-stone of the global, physical gold market."
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