Fears that the US Treasury’s bail-out plan could fail provided support for the gold market, which saw holdings by the main gold exchange traded funds rise to record levels as investors sought a safe haven from the turmoil in financial markets.
On Thursday, the US government was forced to “temporarily” suspend sales of the American Buffalo one-ounce bullion coin after a rush by retail investors depleted stocks.
European central banks have cut their sales of gold to the lowest level in almost a decade, reversing the practice of recent years when hefty sales helped depress prices.
As central banks sell less, investors are rushing into bullion-backed exchange traded funds to such an extent that some analysts refer to the ETFs as the “people’s central bank” because they are now bigger than most countries’ official reserves.
On Thursday, the US government was forced to “temporarily” suspend sales of the American Buffalo one-ounce bullion coin after a rush by retail investors depleted stocks.
European central banks have cut their sales of gold to the lowest level in almost a decade, reversing the practice of recent years when hefty sales helped depress prices.
As central banks sell less, investors are rushing into bullion-backed exchange traded funds to such an extent that some analysts refer to the ETFs as the “people’s central bank” because they are now bigger than most countries’ official reserves.
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