Current Rare metal Investment Demand from customers

The investment in the gold has been very good recently

. To get a clear picture, let's have a glance at the preceding year. As per GFMS statistics, the production from the mines has increased by about 6 % in the the year 2009 and gold supply has increased by 26 %. The most encouraging data was that gold investment has increased from 885 tons in 2008 to 1820 tons in the year 2009. This is a clear gain of 105 % in the demand around the world and is indeed spectacular.

In the world's leading bullion market, India, the investment in gold has increased by about 500% in second half of the year 2009. As per WGC (World Gold Council) statistics the gold investment demand has risen to 221 tones, much higher than the past. The retail investment (gold coins and gold bars) has been up by at least 22% in 2009.

This increase in the gold investment was due to the economic crises which had hit the markets about a year ago. Then the investors turned to more solid and safer assets like gold. Ignot is most suitable in giving hedge in many unpredictable socio-economic conditions.

It now appears that gold will now sustain a fully vibrant market and could encourage more robust investment. There is good awareness now about the bullion as an important investment vehicle. Many investors have turned towards the gold exchange traded funds, which have become most proffered hedges against the economic downturn. ETF investments now account for a major chunk of entire ignot investments.

The main reason for this high demand in gold investment is a belief that growth rate of bullion demand will soon outpace the gold supply. The weak economic situation has forced many investors to alter their investment portfolios. Therefore, they have rightly turned towards the investment in gold. Most of the wise investors are now keeping about 10 % of their investments in the gold assets.

Gold is correlated inversely with the dollar. That is, whenever the dollar turn weak and there is fear of further downslides in it, the demand for gold investment increases.

The major central banks of the countries of the world are largest owners of the gold. Now these central banks have become bulk buyers of gold instead of being bulk sellers (as was the case some time ago), there is a resultant spurt in the gold demand.

Most investors are now researching the gold investment markets like hawks, and are ready to enter the gold markets depending on the prices.

Current Rare metal Investment Demand from customers

By: Michael Miller

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