Here’s a news flash—demand for gold is rising. One of the factors responsible: greater consumer interest in India and China, according to a new World Gold Council report. Among the market forces the WGC says are driving acquisitions: retail investment in Europe; increasing global investment demand fueled by uncertainty over debt and economic recovery; and anticipated returning demand for electronics.
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According to WGC’s Gold Demand Trends for Q2 2010, investment demand was the strongest performing segment during the second quarter of 2010, rising 118 percent to 534.4 tonnes compared with 245.4 tonnes in the second quarter of 2009. “The largest contribution to the rise came from the Exchange Traded Funds segment of investment demand, which grew by 414 percent to 291.3 tonnes, the second-highest quarter on record,” Marcus Grubb, managing director of WGC’s investment division, told the press.