Demand for Gold very Strong in 2011

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) May 26, 2011 -- Demand for gold as an investment was strong at the start of 2011, although it was off the peaks of 2010, the World Gold Council has said.

Investment demand was 310.5 tons, up 26% from the first quarter of 2010 but down 5% from the fourth quarter.

Demand for gold peaked in the second quarter of 2010, partly due to Europe's sovereign debt crisis.

The gold price has risen almost 50% in the past 18 months, and is currently at just below $1,500 an ounce.

Gold is traditionally treated as a haven during times of economic uncertainty.

There was investment demand for 572.6 tons between April and June 2010.

"While demand is still behind from the second quarter, it is still at historically high levels," said Marco Griesler, trading adviser at commodities consultancy Southampton Investment Services Inc.

"Even if there have been hasty upshots in the price of gold when there is a focus of news, in general since the subprime-mortgage crisis people have been coming out of other commodities and into precious metals like gold."

Investment demand of about 300 tons a quarter is considered to be a relatively high figure.

Demand for gold for other uses such as jewelry and technology has been relatively flat, except for dental demand, which has fallen as a result of higher prices.

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