Last week was a wait and see period for gold ahead of The Federal Open Market Committee meeting this Wednesday, and it didn't disappoint. Janet Yellen surprised the market by suggesting she might raise rates sooner than expected which caused a sell-off in the gold market.
However, this trend wasn't seen at GoldMoney, where their worldwide customer base of around 22,000 precious metal investors bucked the market and bought. Head of Dealing at the online trader, Roland Khounlivong, said: 'This week in terms of our buyers to sellers ratio, we saw the largest percentage in favour of buying so far this year. It was clear our customers were waiting for a more favourable price point to enter the market and the fall-out following the FOMC meeting provided that. We also saw a 33% rise in gross traded volumes on the week.
'Gold definitely reclaimed its shine after last week when silver was a more popular choice for our customers. However, the gold/silver ratio has widened further making the industrial metal a good proposition.
'There was a surprise this week when Via Mat Switzerland became the most popular vault location choice for the first time since mid last year, although the Malca-Amit vault in Singapore was still trending.
'We expect some more bargain hunting on the part of our gold bull customers in the coming week as the main market awaits further action from the Fed, and the focus stays on monetary policies.'
GoldMoney has more than 22,000 customers, and stores $1.5bn of precious metals for its customers worldwide.
16:00 20/03/14: Week on week prices: Gold fell 2.8% to $1,331.65; Silver fell 3.6% to $20.48; Platinum also dropped losing 2.2% at $1,442.25 while Palladium, stayed virtually static at $773.27.
NOTES TO EDITOR
GoldMoney is one of the world’s leading providers of physical gold, silver, platinum and palladium for retail and corporate customers. Customers can trade and store precious metal online easily and securely, 24 hours a day.
GoldMoney has offices in London, Jersey and Hong Kong. It offers its customers storage facilities in Canada, Hong Kong, Singapore, Switzerland and the UK provided by the leading non-bank vault operators Brink's, Via Mat, Malca-Amit, G4S and Rhenus Logistics.
Historically gold has been an excellent way to preserve purchasing power over long periods of time. For example, today it takes almost the same amount of gold to buy a barrel of crude oil as it did 60 years ago which is in stark contrast to the price of oil in terms of national currencies such as the US dollar.
GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers' assets with independent audit reporting every 3 months by two leading audit firms.
Follow the GoldMoney Dealing desk team on Twitter: @goldmoneyupdate