The reverse gold rush

Investors may be ditching gold for riskier plays, but there's still plenty of scope for upset.

"A reverse gold rush is underway," says Ian Campbell on Breakingviews. After a sharp fall last month, the yellow metal slipped by another 6% last week and is well below $1,400 an ounce. It has fallen by around 30% from its record peak in late 2011. Institutional investors, encouraged by signs of gradual economic recovery, continue to ditch it in order to find yield in stock or bond markets.

According to the World Gold Council, overall investment demand fell by 49% year-on-year in the first quarter of 2013. Investors in exchange-traded funds rushed out, with net sales of $9.8bn. That offset higher demand for jewellery and for gold bars and coins as investments.

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