Gold continues to perform


The lure of gold remains unabated as figures show its demand has risen by 36 percent.

As finances around the world remain uncertain, gold is still regarded by investors as the ultimate safe-haven.

According to stats released by the World Gold Council, in the second quarter of 2010 total gold demand increased to 1,050 tonnes, 36 percent, a rise attributed to heavy demand for gold exchanged traded funds, which themselves grew by 414 percent.

Demand for actual gold bars also increased, rising to 96.3 tonnes, a climb of 29 percent. The worldwide gold jewellery market has remained strong, however it has seen its demand fall slightly by five percent. In India, the world’s biggest gold jewellery market, there was also a very slight drop of 2 percent, but in china the demand has gone up by five percent.

Marcus Grub of the World Gold Council said: “While many investors turned to gold as a ‘flight to quality’ in response to the uncertain financial environment, this interest has proved resilient even though a sense of optimism has started to return to some sectors of the investment community. In addition to the ETF market and physical bar and coin market, the demand for gold through internet based investment platforms is likely to provide further sources of investment demand.”