Gold ETF demand falls to seven-year low in 2011

Demand for gold ETFs fell to a seven-year low in 2011 even as overall investment demand for gold hit a 14-year high, according to the World Gold Council.

Figures from the WGC show ETF demand amounted to 154 tonnes in 2011, the lowest level since the 133-tonne demand seen in 2004. On a dollar basis, the $7.8bn dollar demand was the lowest since 2007's figure of $5.7bn. The trends suggest "ETF and OTC investors have not been accumulating gold at rates that some commentators maintain," the Council's annual gold demand trends report said. The report said the drop was in part down to profit-taking and rebalancing, but also due to the fact a large number of investors had gained exposure to gold via ETFs earlier than those accessing the metal...