Author: Lawrence Williams
Posted: Thursday , 23 Jan 2014
LONDON (MINEWEB) -
In Thomson Reuters GFMS’ 2013 Gold Survey – Update 2, released today, the specialist consultancy’s Rhona O’Connell – Head of Metals Research and Forecasting – notes that the professional market seems to be over-obsessed with issues around the Fed’s proposed tapering programme but that “private individuals in the traditional gold investing countries had no such qualms and as the price tumbled in the second quarter, hordes of these buyers appeared in the market.”
This has led, GFMS notes, to the centre of gravity in the physical market moving “dramatically eastwards during the middle of 2013 as professional investor disgorged metal, for it to be snapped up by rampant demand in Asia and the Middle East.” This resulted in the largest movement of gold, by value, in history
Thus there has been quite a dichotomy in the gold market over the past year with, as GFMS notes, professional investors continuing to lose interest in gold, but “grass roots” buyers maintaining their healthy appetite for the metal. Thus with the professionals calling the tune ...