Gold holdings at BullionVault – the physical gold and silver market for private investors online – have surpassed the 30-tonne mark for the first time. At present prices, private investors using the world-leading site now own physical gold bullion worth more than GBP1 billion.
Following a 15% easing in the gold price after last summer’s records, growth in BullionVault holdings remains strong, indicating the level of concern amongst private investors over the latest phase of the global financial crisis, which is now nearing its 5th anniversary.
Stored in secure, specialist vaults in the user’s choice of London, New York and Zurich, Switzerland, that 30-tonne hoard outweighs the gold reserves of most central banks. BullionVault’s user holdings are equal to the gold reserves of Canada, Hong Kong, Ireland, Luxembourg, Mauritius and Qatar combined.
Adrian Ash, Head of Research at the gold and silver bullion exchange’s West London offices, says: “While gold may slip out of view for some when prices ease back, as they have done since last summer’s record highs, private investors are using this lull to build their gold holdings on BullionVault.
“Increasing numbers of people are becoming disillusioned with the credit-risk and low returns of traditional High Street saving products.
“Given this backdrop, it is no surprise that savers are continuing to turn to the world’s oldest store of wealth – with BullionVault’s private investors combined holding more gold reserves than many developed nations.”
Worldwide, more than 39,600 private investors have now used BullionVault to buy physical gold and silver, a rise of 50% from June 2011.
Fifty-five per cent of BullionVault users live in the UK. The typical user owns around GBP10,000-worth of bullion.
Swelling by almost 7.5 tonnes from a year ago, total user gold holdings are now worth GBP1.0 billion (USD1.5bn, EUR1.2bn) at current prices, a rise of 47.1% by value from June 2011 (41.9% in Dollars, 64.8% in Euros).