Tag Archives: ETF

China’s gold investment demand grew by 121% in 2Q- Central Banks buy more gold- World Gold Council Report ( WGC)


World Gold Council Report ( WGC)

WGC-  China’s gold investment demand grew by 121% in 2Q- Central Banks buy more gold-

CONCLUSION: the WGC just reported its 2Q report ( see attached). Three key things:

 

1- ONE OF THE KEY NEW TRENDS IS CHINA WHERE RETAIL INVESTMENT DEMAND JUMPED BY 121% ( SEE PAGE 11). We continue to believe that deregulation of the gold market in China could OPEN a major new market for gold.

 

2- ANOTHER INTERESTING TREND IS THAT INDUSTRIAL DEMAND FOR GOLD CONTINUED TO IMPROVE BY 14% MAINLY DRIVEN BY ELECTRONICS UP 25% ( see page 10).

 

3- CENTRAL BANKS WERE NET PURCHASERS OF 7 TONNES OF GOLD DESPITE THE IMF SALE OF 47 TONNES DURING THE QUARTER. RUSSIA WAS AMONG THE LARGEST BUYERS ( 34 TONNES). The philippines also bought more gold.

 

Gold Demand Trends for Q2 2010 out (see Enclosed file), and WGC press release below>

  

 

INVESTMENT DEMAND WILL CONTINUE TO SUPPORT ROBUST GOLD MARKET DURING 2010

 

Demand for gold will remain robust during 2010 as a result of accelerating demand from India and China, as well as increasing global investment demand driven by continuing uncertainty over public debt and economic recovery, the World Gold Council ("WGC") said.

According to the WGC’s Gold Demand Trends report for Q2 2010, published today, demand for gold for the rest of 2010 will be underpinned by the following market forces:

* India and China will continue to provide the main thrust of overall growth in demand, particularly for gold jewellery, for the remainder of 2010.

* Retail investment will continue to be a substantial source of gold demand in Europe.

* Over the longer-term, demand for gold in China is expected to grow considerably. A report recently published by The People’s Bank of China and five other organisations to foster the development of the domestic gold market will add impetus to the growth in gold ownership among Chinese consumers.

* Electronics demand is likely to return to higher historic levels after the sector exhibited further signs of recovery, especially in the US and Japan.

 

Marcus Grubb, Managing Director, Investment at the WGC commented:

"Economic uncertainties and the ongoing search for less volatile and more diversified assets such as gold will underpin investment demand for gold in the immediate future. Further, in light of lingering concerns over public debt levels and the euro, European retail investor demand has increased significantly.

"Over the past quarter, demand for gold jewellery in key Asian markets has been challenged by rising local prices. Nevertheless, we are seeing a deceleration in the pace of decline in demand, providing a strong outlook for ongoing recovery in this crucial market segment."

 

 

GLOBAL DEMAND STATISTICS FOR Q2 2010

* Total gold demand1 in Q2 2010 rose by 36% to 1,050 tonnes, largely reflecting strong gold investment demand compared to the second quarter of 2009. In US$ value terms, demand increased 77% to $40.4 billion.

* Investment demand2 was the strongest performing segment during the second quarter, posting a rise of 118% to 534.4 tonnes compared with 245.4 tonnes in Q2 2009.

* The largest contribution to this rise came from the ETF segment of investment demand, which grew by 414% to 291.3 tonnes, the second highest quarter on * Physical gold bar demand, which largely covers the non-western markets, rose 29% from Q2 2009 to 96.3 tonnes.

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Eric Mindich, Like John Paulson, Makes Gold ETF His Fund’s Biggest Holding


Eric Mindich, Like John Paulson, Makes Gold ETF His Fund’s Biggest Holding

Eric Mindich, the former Goldman Sachs Group Inc. partner who runs $13 billion hedge fund Eton Park Capital Management LP, followedJohn Paulson in making gold his biggest reported investment.
Eton Park bought 6.58 million shares of SPDR Gold Shares, an exchange-traded fund that tracks the price of bullion, in the second quarter, according to a filing today with the U.S. Securities and Exchange Commission. The investment was valued at $800.3 million as of June 30, making it the hedge fund’s biggest holding.
Paulson, who oversees $31 billion at New York-based hedge- fund firm Paulson & Co., was the largest holder of the fund, with 31.5 million shares valued at $3.43 billion as of March 31, according to data compiled by Bloomberg.
Hedge-fund managers such as George Soros and David Einhorn have been investing in bullion and stocks of gold miners amid the threat of inflation from higher government spending. Gold futures rose more than 12 percent this year to reach a record $1,266.50 an ounce on June 21.
Brendan McManus, a spokesman for New York-based Eton Park, declined to comment. Mindich, who was co-head of equities at New York-based Goldman, started his hedge fund in 2004 with $3.5 billion.
The firm also bought shares of Fidelity National Information Services Inc. and Apple Inc. in the second quarter.
Buying Morgan Stanley
Eton Park left unchanged its stake in Viacom Inc., its second-largest holding, at 13.5 million shares. New York-based Viacom is the owner of MTV Networks and Paramount Pictures.
Mindich’s fund increased its stake in Morgan Stanley during the second quarter by 10 million shares, bringing its holding to 15 million shares valued at $348.2 million at the end of June. The hedge fund also added to its holdings in Bank of America Corp. by buying 1.1 million shares in the Charlotte, North Carolina-based bank, taking its stake to 21.1 million shares worth $303.3 million.
Eton Park cut its stake in Citigroup Inc. by 15 million shares, leaving the hedge fund with 60.5 million shares, according to the filing.
Financial companies were Eton Park’s biggest investments in the quarter, accounting for 25 percent of the $7.7 billion in reported holdings.
The SEC requires money managers who oversee more than $100 million in U.S. equities to report their holdings on a Form 13F within 45 days of the end of each quarter. The filing must include all holdings in stocks that trade on U.S. exchanges, as well as options and convertible debt.
To contact the reporter on this story: Saijel Kishan in New York at skishan@bloomberg.net;

See also article from Marketwatch via The MasterFeeds

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