Online precious metals trading platform GoldMoney has seen an increase in new gold purchases being stored in its Asian vaults, but a slowing down in the movement of gold from its western vaults to those in the east.
GoldMoney’s head of dealing, Roland Khounlivong, says: “We are still seeing a continuation of last week’s buying spree, especially for gold which represents around 92 per cent of the precious metals sold – although it has slowed compared to last week.
“What is different is that the demand is turning more global and although most of the metal is being stored in our Malca-Amit vault in Singapore, and Via Mat in Hong Kong, these are fresh purchases and not the trend we have seen of people moving existing holdings from the west to the east. It is clearly too early to say if this is the beginning of a new trend, but it is a significant change.
“Whilst gold has represented the majority of purchases, silver has been the best performing asset over the week. With the gold/silver ratio at 63 from 65 last week, silver shows a good price ratio to the yellow metal.
“Overall we are still seeing more buyers than sellers, in part due to this week’s disappointing manufacturing data from the US, and also due to emerging market currency fears. Investors remain nervous about the fragile economic recovery, and today (7 February) will be a test when we see the US Employment figures; whilst next week the Chinese Consumer Price Index and GDP in the Eurozone might provide some further direction for the market.”