BullionVault’s Gauge of Client Buying Falls Toward Four-Year Low

Sep 02, 2014 4:00 am ET

Sept. 2 (Bloomberg) -- BullionVault, an online service for investors to buy and sell physical gold and silver, said its Gold Investor Index retreated toward a four-year low in August.

The gauge fell to 51.7, from 51.9 in July, the London-based company said in an e-mailed report today. A reading above 50 indicates more buyers than sellers and the index reached 51.2 in June, the lowest level since February 2010. Customer holdings rose for a third straight month, to a record 33.1 metric tons.

Bullion prices added 0.4 percent in August as investors weighed tension over Ukraine and in the Middle East against signs of an improving U.S. economy that supports the case for the Federal Reserve to raise interest rates. The dollar and global equities advanced last month.

“Despite this summer’s geopolitical headlines, safe-haven demand for gold has so far been notable by its absence,” Adrian Ash, head of research at BullionVault, said in the report. “Private investors do continue to grow their holdings, only steadily and quietly on these flat prices.”

Gold for immediate delivery traded at $1,276.17 an ounce by 7:55 a.m. in London, according to Bloomberg generic pricing. The metal gained 6.2 percent this year, after slumping 28 percent in 2013, the biggest annual decline in more than three decades.

The company’s customers own about $1.4 billion of gold and the metal is held in vaults in London, Singapore, New York, Toronto and Zurich. Clients added 5 tons of silver to take holdings to 466.9 tons, the first increase since May, it said.