Tuesday, January 17, 2012

Gold demand surged in 2011 on new survey

The Thompson Rueters gold survey for 2011 was recently released and the results showed a large surge in gold coin and bar sales globally last year.  Predictions for 2012 also point towards a steady climb back up towards $2000 an ounce, with potentially higher gains should central banks begin to monetize en masse.

Thomson Reuters GFMS annual gold survey released today shows that global investment increased 20% last year to $80 billion, leading to the nominal high last September of $1,920/oz. This is primarily attributed to the physical buying of bullion.

Gold may climb to a new nominal record above $2,000/oz by early next year as concern about currencies and low interest rates encourage investors to seek a protection of wealth, Thomson Reuters GFMS said.

Gold coin purchases gained 13% last year and will increase 2.7% in the first half.

Purchases of gold bars increased by 36% to nearly 2,000 (1,194) metric tonnes, concentrated in China, Germany, Switzerland and Austria.
East Asia demand for gold bars rose 53% to 456 metric tonnes.
India rose 9% to 297 metric tonnes and western markets demand for gold bars rose 41% to 335 metric tonnes.

Central banks increased net purchases by a massive fivefold to 430 tons last year, and may buy another 190 tons in the first half, GFMS said. – Goldcore via Zerohedge


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