US Precious Metals (fka USPR)

[gnolfinvestor]

http://www.marketwatch.com/story/gold-appetite-in-february-highest-in-nearly-a-year-2015-03-03


Gold appetite in February highest in nearly a year
SAN FRANCISCO (MarketWatch) — Investors had a yen for gold last month. BullionVault’s Gold Investor Index climbed from a five-year low to 54.5 in February — its highest level in 22 months and its fastest increase since April of 2013.

The index, run by the Internet-based metals exchange operator BullionVault, tracks the balance of private investors starting or growing their gold holdings on online precious-metals market against those who cut or sold off their holdings. So a reading above 50 suggests that there are more buyers than sellers in the market for the precious yellow metal.

In fact gold appetite, as measured by BullionVault, hit its highest level despite gold futures GCJ5, +0.02% on Comex suffering a decline of roughly 5% for the month of February — their largest monthly percentage decline since September of last year.

BullionVault, LBMA
“Price dips continue to attract long-term investors,” said Adrian Ash, head of research at BullionVault.

So far this year, many of the gold buyers are coming from Europe. “With the European Central Bank now embarking on QE bond purchases, cash inflows from Eurozone users of BullionVault have risen 34% in 2015 to date from the same period last year,” noted Ash.

Still, the Gold Investor Index is a long way from its peak. Its reading hit 71.7 in September 2011. That is about the time gold prices rose to a record settlement near $1,900 an ounce on Comex.

Read: Gold may take a shine to $1,700 an oz. by 2016