Gold was up, up and away in September. But who was doing the buying?
New data we released Wednesday here at BullionVault show that private households across Western Europe and the US continue to join the bull market. But their response to QE3 and the latest phase of the euro-zone crisis is more measured – you might even say complacent – than the recent price action alone suggests.
"There has until now been a lack of hard data on self-directed retail investors in gold," said Marcus Grubb of the World Gold Council, which is a shareholder in BullionVault, at the launch here in London of our new Gold Investor Index.
"For instance, the data we produce [the excellent Gold Demand Trends] is more at the macro level, including institutional and private wealth management. This new Gold Investor Index is a real innovation – a unique and useful addition to the data already available. It's a coincident indicator of what private households are choosing to do with regards to physical gold."
How so? BullionVault's new Gold Investor Index is a monthly data point based on actual trading on BullionVault, the world's largest provider of physical gold ownership to private investors. Since launch in April 2005 it's now been used by more than 42,000 private investors from 159 countries worldwide.