OREANDA-NEWS. March 29, 2011. Sales of gold ingots and investment in gold deposits without physical delivery saw an over 20-fold growth this February versus January, with the number of transactions going up 4.5 times. This could be seen as a result of gold price upsurge that resumed after a period of decline and worked as an incentive for long-term private investments, reported the press-centre of VAB.

“Although actual quantity of gold sold this February was approximately the same as the last February the share in overall sales of deposits in gold by private individuals went up many times,” Vladimir Pishchany, head of VAB Bank’s banking metal transactions department, said.

According to Mr. Pishchany, rising geopolitical tensions whose manifestations could be observed throughout February across a number of European countries will add to the market’s appetite for gold as a profoundly reliable and long-tested asset.  Gold is available in ingots or may be purchased without actual delivery.  In both cases it could be deposited or credited to a current account – this determines the size of yield on the investment.  Purchase of the precious metal without physical delivery and its further deposit is the most optimum scenario for a conventional buyer.

“Firstly, the client gets higher additional yield in the form of interest.  Secondly, this option saves the trouble of gold storage and security since actual weight in troy ounces of all gold placed in deposits without physical delivery is kept in international banks in the form of large ingots, which guarantees higher level of security and protection for any such investment,” Vladimir Pishchany explains.