Gold Buying Yes, Selling No

Gold Investor Index shows investor selling retreating further as price steadies...
 
The NUMBER of BullionVault users starting or adding to their gold holding increased slightly from September last month, writes Adrian Ash, head of research.
 
But it was a 15% drop in the number of net sellers which pushed the Gold Investor Index higher in October, up to its highest level since April.
 
Overall, net gold buyers outnumbered sellers better than two-to-one on BullionVault in October.
 
That took our index – which measures the balance of private investors adding to their gold holdings over those who reduce them on BullionVault, the world's biggest exchange for gold and silver online – up to a 6-month high of 54.3 from 53.0 in September.
 
The Gold Investor Index peaked at 71.7 in September 2011. A reading of 50.0 would signal a perfect balance of net buyers and sellers.
 
Of course, with world stock markets hitting 5-year highs, it should have been no surprise to gold prices edging lower. Average monthly gold prices have now fallen in 10 of the last 12 months – something not seen since the bull market began in early 2001.
 
But Washington's short-term fix to the debt ceiling confirms there's no will to tackle spending or money printing long term. And with the insurance value of gold ownership being confirmed, October's drop in its price let savers build their insurance at lower cost.

Buy gold at the lowest prices in the safest vaults today...

Adrian Ash runs the research desk at BullionVault, the physical gold and silver market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and is now a regular contributor to many leading analysis sites including Forbes and a regular guest on BBC national and international radio and television news. Adrian's views on the gold market have been sought by the Financial Times and Economist magazine in London; CNBC, Bloomberg and TheStreet.com in New York; Germany's Der Stern and FT Deutschland; Italy's Il Sole 24 Ore, and many other respected finance publications.

See the full archive of Adrian Ash articles on GoldNews, or get more from Adrian Ash on Google+

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News, RSS links are shown there.