Investors added 43.5 million oz. gold to their collective holdings in 2006, down slightly from 46.7 million oz. in 2005, but still far above pre-2001 levels. Investors are projected to add another 39.7 million oz. gold this year on a worldwide basis.
This compares with annual average net purchases of 9.2 million oz. gold by investors from 1950 through 2000. Investors around the world continue to buy large volumes of gold in bullion, coin, and jewelry form. The amount of gold that may be purchased may decline from 2006 levels during 2007, but the overall pace of investment demand is expected to remain very high by historical standards.
Overall, investors have bought 241.5 million oz. gold between 2001 and 2006. That is nearly one-quarter of the 1,045 million oz. gold that investors are estimated to own collectively around the world. Since 2006, private investors have held more gold than central banks.
The gold price rose sharply in response to the investor rush into gold last year. The average price of gold was US$606.67 per oz. in 2006. That was up 35.9% from 2005’s average. It also marked the second highest annual average gold price on record, surpassed only by the US$611.98 average price in 1980. Through March 9, the price this year has averaged US$650.38 per oz.
— The preceding is from an information bulletin published by New York-based CPM Group.
Be the first to comment on "Facts ‘N’ Figures: Hordes Hoarding Gold"