Investing in gold: a leap through repeated crises. | Gold

As prices fall …

The gold investor index has been growing for 11 months.

The downward trend in gold prices since the spring of 2021 has led to an increase in investment in ingots in May, reaching its best level in almost 12 months.

In fact, this is what the BullionVault Gold Investor Index tells us, our favorite measurement tool for analyzing trading behavior among users of our online gold and silver investment platform for smartphones.

Depending on the number of buyers and sellers, the index should give 50.0 if the balance between them was perfect. Last month, it rose by 2.0 points to 56.2, which is the highest figure since June 2021. This is above the average for the first time since November 2020, after he tried to make a profit.

chart of the index of gold investors and the average monthly gold prices in euros

Index of gold investors and gold prices in euros, BullionVault

The growth of the gold investor index in May shows us that gold prices in US dollars fell the most in 14 months, falling by 4.4% to the lowest monthly average from January to 1839 dollars per ounce.

Gold prices are currently constrained by inflation and interest rates, creating what commentators say will be a trade gap over the next few weeks or even months.

The currency devaluation, the worst in forty years, is restoring gold’s reputation as a safe haven. However, its lack of profits and difficulties in receiving dividends can be compared to the Central Bank’s rate increase, which starts from zero, and inflation has risen to 8% or more per year.

As with soaring prices for life, financial markets are now accustomed to a terrible war in Ukraine. This sequence of crises has weakened confidence in stock markets and the economy, encouraging investors to buy gold when prices fall.

The number of private investors who decided to buy gold from BullionVault, which is stored and insured in our storage facilities in London, New York, Singapore, Toronto or Zurich, increased by 16.2% since April. This halved the decline in April from a 9-month peak in March. For comparison, the number of gold sellers fell by 23.8% to its lowest level since December.

Demand for investment in gold was also significant: acquisitions at BullionVault amounted to almost a quarter of a ton of sales to our customers.

All this has further increased the number of people who own gold by half a percent for the second month in a row. That’s more than 100,000 people (storing and storing their precious yellow metal in our specialized repositories for fintech users in West London) who own up to 47.7 tonnes of gold worth 2.6 billion euros ($ 2.8 billion).

Investing in silver

On average for the month, the price of silver in US dollars in May fell by 10.7%. This downward trend since March 2020 underscores the impact of the global COVID crisis on energy and industrial goods.

Considering that the average prices for silver during the month were at the lowest level since July 2020 – $ 21.90 per ounce, it turns out that the number of buyers of this metal has increased by 18.6% since April, and the number of sellers fell to 24, 3%. reaching the level of last December.

In fact, the index of silver investors rose by 2.4 points, repeating the growth in April, to 56.0, which is the highest figure in 11 months.

Graph of the index of investors in silver metals compared to average prices for silver metal

Silver Investors Index and Silver Price, BullionVaultlt

As a result, our customers’ purchases exceed their sales by 15 tonnes, making BullionVault’s most valuable precious metal reserves at its highest level in the last five months at 1,235 tonnes worth € 808 million (US $ 864 million). This follows the profit caused by rising prices at the beginning of the year and in the spring.