Global gold ETF holdings hit record highs of 75.7 moz last week

Strong Gold ETF inflows and central bank buying are providing excellent support for gold prices despite prices remaining weak after the September crash. COMEX gold is currently trading around $1720/oz, down $200 from its all time high of around $1920.

-Global gold ETF holdings hit record highs of 75.7 moz (million ounces) last week. And this despite gold being significantly weak after the strong bull rally in August. Holdings have increased almost 8% in 2011, against a 24% rise in the gold spot price, with only limited redemption activity in the face of the recent dip in the spot price towards $1,600/oz.

-Central bank buying has meanwhile been on full steam with purchases at their highest level since the 1970′s. The Bank of Korea purchased 15 tonnes of Gold in November, almost 21% of the 2010 global purchases. The World Gold Council (WGC) has reported that 2011 could be the strongest year in terms of net central bank purchases and forecasts such bank buying to hit 450 tonnes.

The central banks will account for 10% of global demand in 2011 compared to being 10% of global supply in 2010.

Source: ETF securities research

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Posted by admin on Dec 6 2011. Filed under Gold ETFs. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry