Investors were in dire need of gold last month, according to the BullionVault Gold Investor Index. The Gold Investor Index increased from its lowest point in 5 years to 54.5 in February, the highest level in 22 months and the strongest increase since April 2013.
The Gold Investor Index is run by BullionVault, a metals exchange operator. BullionVault follows retail investors who start investing in gold or who are strengthening their positions on the online precious metals markets.
The company compares this to those who (partly) sell their gold positions. A figure that is higher than 50 indicates that there are more buyers than sellers in the gold market.
Higher Demand For Gold
But there is more: the data from BullionVault is at its highest level in months despite gold futures having decreased in value by 5% in February, which is the biggest monthly drop since September of last year.
The fact that the gold price is low makes the precious metal more attractive to long-term investors, according to Adrian Ash, head of research bij BullionVault. This year it seems like many of the buyers come from Europe.
Now that the European Central Bank has started buying back debt in the eurozone, cash inflow from investors from the eurozone is up by 34% in 2015 compared to the same period last year, says Ash.
The Gold Investor Index still has a long way to go, however, before its all-time would be in sight. This record level was reached in September of 2011, when the index came out at 71.7, which practically coincided with the all-time high of the gold price of 1,900 dollars per ounce.
