Gold bar and GOLD coin demand in Europe

Gold bar and GOLD coin demand in Europe more than doubled to 118.1 tons in the third quarter from a year earlier, data from the London-based World Gold Council show. European Union clients opened a record number of accounts with GoldCore last week and that may be exceeded this week, O’Byrne said.

Central banks are adding to their gold reserves for the first time in a generation. South Korea said last week it bought 15 tons in November to diversify its foreign-exchange reserves. The World Gold Council expects central banks to buy as much as 450 tons this year. Official holdings stand at 30,708 tons, data from the council show.

What is investment gold?

What is investment gold?Gold has been used throughout history as money and has been a relative standard for currency equivalents specific to economic regions or countries, until recent times.Today, like most commodities, the price of gold is driven by supply and demand as well as speculation. However unlike most other commodities, saving and disposal plays a larger role in affecting its price than its consumption.

To explain what is investment gold we can follow describe below ; investment gold is defined as:

(a)Gold of a purity not less than 995 thousand that is in the form of a bar, or a wafer, of a weight accepted by the bullion markets;

(b)A gold coin minted after 1800 thatis of a purity of not less than 900 thousand,is, or has been, legal tender in its country of origin, and is of a description of coin that is normally sold at a price that does not exceed 180% of the open market value of the gold contained in the coin.