According to BullionVault its Gold Investor Index, which tracks the number of people who begin or grow their gold holdings each month against those who sell, fell from 52.1 to 50.5 during December. A reading of 50.0 would indicate equal numbers of net sellers and buyers.
This was the sharpest drop in the index since prices crashed 25% in spring 2013 and results from the number of net sellers nearly overtaking the number of buyers for the first time in almost five years.
The index peaked at 71.7 in September 2011 while its low of 48.8 was recorded in February 2010.
“December’s price rally deterred new buying and prompted investors to take profits after buying 2014’s earlier dips,” said head of research Adrian Ash.
“Coming at year-end, last month’s price rise also gave existing gold investors a chance to rebalance their broader portfolio,” Ash added.
“Gold priced in Sterling gained 5.9% in 2014 while the total return from UK shares was minus 1.2%. Gold selling was stronger still among eurozone customers, who saw gold rise 13% for the year as the single currency sank and interest rates on cash and bonds fell further behind inflation.”
Analysis by BullionVault indicated 2014 has done little to change the fact that gold is comfortably outstripping UK assets during the 21st century so far, rising 330% since 1999 versus the FTSE All Share’s 173%, 251% from gilts, and 231% from housing.
