Dealing Desk Update: Asian vaults see rise in storage of new gold purchases

Feb 7, 2014·Roland Khounlivong

It has been an interesting week for international online precious metals trading platform GoldMoney, which has seen an increase in new gold purchases being stored in its Asian vaults, but a slowing down in the movement of gold from its western vaults to those in the east – the first time this latter trend has reined in for over a year.

GoldMoney's Head of Dealing, Roland Khounlivong said: 'We are still seeing a continuation of last week's buying spree, especially for gold which represents around 92% of the precious metals sold – although it has slowed compared to last week.

'What is different is that the demand is turning more global and although most of the metal is being stored in our Malca-Amit vault in Singapore, and Via Mat in Hong Kong, these are fresh purchases and not the trend we have seen of people moving existing holdings from the west to the east. It is clearly too early to say if this is the beginning of a new trend, but it is a significant change.

'Whilst gold has represented the majority of purchases, silver has been the best performing asset over the week. With the gold/silver ratio at 63 from 65 last week, silver shows a good price ratio to the yellow metal.

'Overall we are still seeing more buyers than sellers, in part due to this week's disappointing manufacturing data from the US, and also due to emerging market currency fears. Investors remain nervous about the fragile economic recovery, and today, (Friday 7th), will be a test when we see the US Employment figures; whilst next week the Chinese Consumer Price Index and GDP in the Eurozone might provide some further direction for the market.'

16:00 06/02/14: Week on week prices: Gold rose 0.97% to $1,254.81; Silver was also up 3.44% $19.85; Platinum off 1.03% at $1,370.74 and Palladium barely moved, up 0.16% at $708.50.




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GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for retail and corporate customers. Customers can trade and store precious metal online easily and securely, 24 hours a day.

GoldMoney has offices in London, Jersey and Hong Kong. It offers its customers storage facilities in Canada, Hong Kong, Singapore, Switzerland and the UK provided by the leading non-bank vault operators Brink's, Via Mat, Malca-Amit, G4S and Rhenus Logistics.

Historically gold has been an excellent way to preserve purchasing power over long periods of time. For example, today it takes almost the same amount of gold to buy a barrel of crude oil as it did 60 years ago which is in stark contrast to the price of oil in terms of national currencies such as the US dollar.

GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers' assets with independent audit reporting every 3 months by two leading audit firms.