Gold Investment Report
Gold Investment Digest
First quarter 2011
April 2011 www.gold.org
Overview Gold’s long-term supply and demand dynamics and several macro-economic factors ensured gold remained a soughtafter asset in Q1 2011. Following a consolidation in January, gold ended the quarter on a firm footing, returning 2.4% over the period.
Price trends
The gold price rose by 2.4% during Q1 2011 to US$1,439.00/oz by 31 March, on the London PM fix. However, gold’s volatility continued to diminish, a testament to its measured price appreciation. Gold prices rose to 28-year highs in yen terms by the end of the quarter, despite a temporary currency spike in March in the wake of Japan’s crises. In other countries, gold returns were more modest and even negative, as the US dollar lost ground against multiple currencies. Read more…
Contents
Price trends Investment trends Market and economic influences Gold market trends Key data 02 06 12 18 24
Contributors
Juan Carlos Artigas juancarlos.artigas@gold.org Johan Palmberg johan.palmberg@gold.org Eily Ong eily.ong@gold.org Louise Street louise.street@gold.org Marcus Grubb Managing Director, Investment marcus.grubb@gold.org
Investment trends
Investor activity in the gold market during Q1 2011 differed by region. ETFs in the US and the UK experienced net redemptions on the back of year-end rebalancing and some profit-taking, while continental European and Indian investors increased allocations. Recent data shows a resumption of net inflows in the latter half of March and early part of April. Coin and bar purchases remained high, while activity in the futures and OTC markets was buoyant. Read more…
Market and economic influences
Investor sentiment improved in the first part of Q1 2011. However, continued geopolitical unrest likely slowed the normalisation of economic growth and also raised the potential for a significant slowdown. Inflation – especially from food and energy prices – remains a real concern for consumers around the
First quarter 2011
April 2011 www.gold.org
Overview Gold’s long-term supply and demand dynamics and several macro-economic factors ensured gold remained a soughtafter asset in Q1 2011. Following a consolidation in January, gold ended the quarter on a firm footing, returning 2.4% over the period.
Price trends
The gold price rose by 2.4% during Q1 2011 to US$1,439.00/oz by 31 March, on the London PM fix. However, gold’s volatility continued to diminish, a testament to its measured price appreciation. Gold prices rose to 28-year highs in yen terms by the end of the quarter, despite a temporary currency spike in March in the wake of Japan’s crises. In other countries, gold returns were more modest and even negative, as the US dollar lost ground against multiple currencies. Read more…
Contents
Price trends Investment trends Market and economic influences Gold market trends Key data 02 06 12 18 24
Contributors
Juan Carlos Artigas juancarlos.artigas@gold.org Johan Palmberg johan.palmberg@gold.org Eily Ong eily.ong@gold.org Louise Street louise.street@gold.org Marcus Grubb Managing Director, Investment marcus.grubb@gold.org
Investment trends
Investor activity in the gold market during Q1 2011 differed by region. ETFs in the US and the UK experienced net redemptions on the back of year-end rebalancing and some profit-taking, while continental European and Indian investors increased allocations. Recent data shows a resumption of net inflows in the latter half of March and early part of April. Coin and bar purchases remained high, while activity in the futures and OTC markets was buoyant. Read more…
Market and economic influences
Investor sentiment improved in the first part of Q1 2011. However, continued geopolitical unrest likely slowed the normalisation of economic growth and also raised the potential for a significant slowdown. Inflation – especially from food and energy prices – remains a real concern for consumers around the