You are here: Home - Investing - Experienced Investor - News -

Gold investors head for the exit, despite recent price hikes

Written by: Adam Lewis
Following news from the World Gold Council that demand for gold has dropped 18% since last year’s high, new research has revealed many investors are taking profits in the precious metal.

According to BullionVault, the number of investors reducing or selling all their gold holdings on its online platform jumped by almost 22% in March, ending the strongest run of positive demand in five years.

Additionally the number of net gold buyers dropped by one-fifth, falling to the lowest level since January 2016, while new interest in the yellow metal was also weak with the fewest new buyers recorded since the price of gold hit a six-year low in December 2015.

As a result the Gold Investor Index – which is a measure of actual trading amongst private gold owners – fell from 54.2 in March to 52.1 in April. A reading of 50 signals an equal number of net buyers with net sellers across the month.

The drop in demand comes despite the fact that, priced in euros, gold bullion has averaged its highest monthly price rise since September. This is thanks largely to a spike in geopolitical risk, with April’s US-Russia stand off in Syria, plus the first round of the French presidential elections.

“Price beats politics in the physical market and private investors chose overall to take profit on gold bullion in April,” says Adrian Ash, head of research at BullionVault.

“They liquidated almost a quarter-tonne on BullionVault as prices spiked mid-month. Net demand then came back as prices retreat after the first-round of France’s presidential election. Amid the volatility in prices, the underlying trend remains positive.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week