Gold ETF Demand Doubles in First Quarter
Source: MarketWatch (5/20/08)
Continuing instability in the equities markets, ongoing fears over the dollar and rising inflation and increased understanding of gold's investment attributes helped spur demand" for ETFs, the Gold Demand Trends report, complied by precious-metals consultancy GFMS Ltd. for the WGC, showed.
Gold ETF demand climbed to 73 metric tons for the first quarter of this year to represent $2.2 billion in dollar terms.
But the "sharp rise and unusually high volatility in the gold price" was the primary cause of the drop in tonnage demand to 701 metric tons for the quarter.
"The growth in ETFs was really quite good," said George Milling-Stanley, a spokesman for the World Gold Council. But investment demand, as a whole, was weaker because of lower sales of small bars and coins in the developing world, he said.