Gold Demand Hits Record For 2005

In 2005 gold demand hits record of $53.6 billion with a 26% rise in investment demand in tonnage terms.

Identifiable investment in 2005 was 26% higher than a year earlier in tonnage terms and 37% higher in value terms. The fastest growing category was Exchange Traded Funds and similar products (ETFs) which grew by a massive 53% in tonnage terms and 67% in dollar terms. Of the total 203 tonnes inflow, 168 tonnes, or 83% of the total, were accounted for by the WGC-backed, streetTRACKS Gold Shares, listed on the New York Stock Exchange.

Market reports indicate that the vast majority of the inflow consists of new investment with little cannibalisation of existing gold investments. Furthermore, the majority of investors appear to be long-term holders. Looking ahead, inflows into the ETFs in the first weeks of 2006 exceeded the average rate of net central bank selling during the whole of 2005.

See the full report here for the latest gold demand


The demand for gold continued strong in the first part of 2006 and should remain positive through the remainder of 2006. Growing interest in gold as an investment will keep gold demand strong, as evidenced by increased purchases of gold bars and coins.