Gold Demand in Q1 Five Year Low- Vietnam Becomes Largest Retail Investor
Source: Mineweb.com (5/21/08)
Vietnam came into the spotlight in this quarter with investment demand more than doubling to 32 tonnes, making it the largest investment market during the quarter.
New investment in Exchange Traded Funds and similar products was lively in the first quarter; doubling against Q1 2006 to 73 tonnes in response to the financial crisis and other economic concerns [does the subsequent reversal of these gains suggest a return of confidence? Doubtful], while the associated action in the price had the reverse effect on retail investment, which dropped by 35% to 73 tonnes. The impact on overall identifiable investment was thus broadly neutral in tonnage terms, but the texture of the activity was different. In dollar terms, the amount of metal absorbed in the identifiable investment sector rose by 41% to $4.3 billion.
Vietnam came into the spotlight in this quarter with investment demand more than doubling to 32 tonnes, making it the largest investment market during the quarter. Net disinvestment from retail holders in Japan, however, was 37 tonnes. Vietnam's arrival into pole position in the retail investment sector ousts India from the top slot, a position that it has held since the second quarter of 2003.