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With the recent flurry by investors to buy gold bullion, for the first time in decades the purchasing of gold jewellery as the main form of gold consumption has taken a backseat.
Factors such as the recent global economic crisis, worries over European debt, the threat of inflation and the fluctuating US dollar have all played a part in pushing up the Gold Price. Historically at time of economic uncertainty gold has always been considered a safe haven for investments and this appears to be the case.
Analysts GFMS have reported that demand for gold jewellery has fallen by 23% to 1687 tonnes whereas demand for gold bullion has almost doubled to 1820 tonnes. Central Banks have also played a large part in this turn of events as they are now being seen to be buying gold bullion where traditionally they are predominantly known as being sellers of this precious metal.
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