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Investment
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Demand for
Gold
W W W. G O L D R AT E F O R T O D AY. O R G
 INVESTMENT DEMAND FOR GOLD

1. In 2010 investment demand for gold totalled

1,333 tonnes
2. This is 995 tonnes for bars and coins and
338 tonnes were purchased by exchange
traded funds and similar products (Gold
Bullion Securities, SPDR Gold Shares,
Central Fund of Canada etc.)

W W W. G O L D R AT E F O R T O D AY. O R G
 INVESTMENT DEMAND FOR GOLD

1. Compared to 2009, gold demand was down

by 2 per cent in terms of quantity, but rose
23 per cent in value terms
2. In 2006 – 2007 private investors held
accumulated for the first time more gold
than all central banks together (also see
table)

W W W. G O L D R AT E F O R T O D AY. O R G
INVESTMENT DEMAND FOR GOLD

W W W. G O L D R AT E F O R T O D AY. O R G
 INVESTMENT DEMAND FOR GOLD

1. Investing in gold is possible by buying the

physical metal, or by means of securities
trading.
2. Gold bars can be as light as 1 gram
3. Bars held by central banks as gold reserves
have a weight of 400 troy ounces (12.4 kg)

W W W. G O L D R AT E F O R T O D AY. O R G
 INVESTMENT DEMAND FOR GOLD

1. For trading purposes, the kilobar (100 gram

or 35.27 ounces) is more commonly used
2. Gold coins are issued by the national mint
3. The most popular ones are the South African
Krugerrand, the Canadian Maple Leaf and
the American Eagle Gold Coin.

W W W. G O L D R AT E F O R T O D AY. O R G
 INVESTMENT DEMAND FOR GOLD

1. Investors can also purchase certificates,

funds, or exchange traded funds.
2. Here, no physical gold is purchased, which
therefore does not incur shipping and
storage fees.
3. Certificates depend on the solvency of the
issuer and do not influence supply and
demand at the commodity exchange.
W W W. G O L D R AT E F O R T O D AY. O R G
 INVESTMENT DEMAND FOR GOLD

1. Another option are shares of gold mines. Big

mining companies are Newmont Mining,
Anglogold and Freeport McMoran
2. It is also possible to invest in development
(Gold Corporation and SeaBridge etc.) and
exploratory companies

W W W. G O L D R AT E F O R T O D AY. O R G
 INVESTMENT DEMAND FOR GOLD

1. Gold Mine shares can have higher returns in

terms of increasing share prices and
dividends
2. On the other side, Investing in gold
companies also brings about higher risks, for
example production downtimes due to mine
shaft collapses, management mistakes,
political influences and insolvencies.
W W W. G O L D R AT E F O R T O D AY. O R G
 INVESTMENT DEMAND FOR GOLD

1. Even higher returns are promised by futures

and options

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