GFMS - Investors shelter in the gold
16-01-2009 golden marketThe investors are looking for the safety of the physical gold because the economic suspense and the falls of the money-market rates reduce the interest in other assets, while the premiums for coins and golden bars climb. The metal counsel GFMS has communicated on Thursday that the demand for golden ingots stayed firm in 2008, with regard to that of the previous year, because a liquidation of institutional investors to obtain funds and to cover losses on other markets was compensated by a new interest in the physical gold.
The appetite for the smallest products of investment, like the coins and her sweep, it is blooming, according to operators.
“The gold is a refuge”, said Mark O’ Byrne, executive director of Gold and Silver Investments, who emphasized that the precious metal had in 2008 a performance significantly better than most of other assets.
“Last year, the gold in pounds sterling had a rise of more than 40 %, and in terms of dollars, 6 % raised 5 ó, while the stock markets mostly fell down a minimum from 20 to 30 %”, he told.
The premiums paid for the investors for the Krugerrands, coins of an ounce, on the cash price of the gold are at present 10 to 11 %, more than 4 to 5 % usual, said operators.
The sovereign ones, coins smaller that weigh about a quarter of ounce, at present quote with a premium of about 20 %, opposite to the most habitual level of 15 %.
The premiums paid for the coins to invest have been impelled by the absence of offer on the market, said operators, that they attribute it to that the investors stick to the gold that they possess.
The interest in the physical gold also has provoked an increase of the buys of funds negotiated in bag (ETF), which express values endorsed by real stock of a given raw material.
The golden ingots buy for the ETF has formed in the last years an important demand platform.
In addition to the suspense concerning other assets as the actions and the currencies, the gold is benefiting from a fall of the money-market rates because the central banks are acting to stimulate the economic growth.
A climate of low money-market rates reduces the opportunity cost of possessing gold, which is assets that does not deliver yields.
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16-01-2009
