Gold Investment Absorb
First 1 / 4 2011
04 2011 www.gold.org
Overview Gold's long-term source and demand dynamics and several macro-economic elements ensured platinum remained a soughtafter advantage in Q1 2011. Using a consolidation in January, precious metal ended the quarter on a firm footing, returning installment payments on your 4% in the period. Cost trends
The gold price flower by 2 . 4% during Q1 2011 to US$1, 439. 00/oz by 31 March, around the London PM HOURS fix. Nevertheless , gold's unpredictability continued to diminish, a testament to its assessed price appreciation. Gold rates rose to 28-year heights in yen terms by the end of the 1 / 4, despite a temporary currency spike in Drive in the wake of Japan's crises. Far away, gold results were even more modest and in many cases negative, since the US dollar lost space against multiple currencies. Read moreвЂ¦
Cost trends Expenditure trends Market and economical influences Rare metal market developments Key data 02 summer 12 18 24
Juan Carlos Artigas juancarlos. [email protected] org Johan Palmberg johan. [email protected] org Eily Ong eily. [email protected] org Louise Street louise. [email protected] org Marcus Grubb Controlling Director, Investment marcus. [email protected] org
Investor activity inside the gold marketplace during Q1 2011 differed by location. ETFs in the US and the UK experienced net redemptions around the back of year-end rebalancing plus some profit-taking, whilst continental Western european and American indian investors increased allocations. Latest data displays a resumption of net inflows in the latter 50 % of March and early part of April. Coin and club purchases continued to be high, when activity inside the futures and OTC marketplaces was buoyant. Read moreвЂ¦
Market and economic influences
Investor sentiment improved in the first a part of Q1 2011. However , continued geopolitical unrest likely slowed the normalisation of monetary growth and in addition raised the potential for a significant slowdown. Inflation вЂ“ especially coming from food and energy prices вЂ“ is still a real matter for customers around the world. Those two influences likewise focused trader attention on gold's one of a kind attributes and its role as a store of value. Read moreвЂ¦
Gold market trends
First reports intended for Q1 2011 indicate healthy but blended activity available in the market, responding in part to modifications in our gold price. Facts suggests banks continued their particular recent trend of limited sales and increasing acquisitions. In addition while mine creation increased in 2010, recycling activity declined slightly as economical growth in emerging markets mitigated portion of the effect of bigger prices. Examine moreвЂ¦
The gold price continued its upwards trend, increasing during the initial quarter of 2011 simply by 2 . 4% to finish the quarter in US$1, 439/oz, on the Greater london PM resolve (the price of gold referenced in the rest of the textual content will label the Greater london PM fix). While gold's performance appeared more modest relative to typical gains of 6. 2% per 1 / 4 over the past 2 yrs, its persistence and solid growth trend has led significantly to its ability to provide diversification, risk management and wealth preservation to the investor's collection.
On average, rare metal prices elevated by 1 ) 4% to US$1, 386. 27/oz in Q1 2011 from US$1, 366. 78/oz in Q4 2010 (Chart 1). When gold knowledgeable a price loan consolidation in the early on part of the one fourth, falling as low as US$1, 319. 00/oz about 29 January, it climbed to new record highs throughout March and continues to achieve new highs in Apr. More importantly, January's price fall of five. 6% corresponded to not much over a a single standard change move for the given month. The average month-to-month volatility continues to be 4. 9% over the past a decade. Gold's long term supply and demand mechanics and many macro-economic factors ensured precious metal remained a sought-after property. First, the united states dollar vulnerable against main currencies, which often supported rare metal prices provided gold's adverse correlation to the dollar. Second, comments by Federal
Reserve that signalled an...