OREANDA-NEWS. September 07, 2011. VAB Bank demonstrated a 36% growth in gold sales over July 2011 versus the similar period of the previous year, with a quadrupled share of sale-and-deposit transitions in the month’s yellow metal sales portfolio. Compared to this June, sales of gold into current and deposit accounts without physical delivery went up 5 times, reported the press-centre of VAB Bank.

“The sales dynamics were boosted by two factors.  The first one was the gradual climbing of gold prices that overcame a number of barriers within a short time period.  The second one was the economy position of a number of countries with unresolved debt problems and the subsequent statements on potential US default that warmed up interest to gold as an asset not subjected to exchange risk. 

Many depositors decided to secure their savings through diversification of long-term investments, inter alia via purchase of the yellow metal.  Against this backdrop it is to be remarked that the investors in gold are becoming increasingly aware of advantages of various types of such investment: customers preferring transactions with physically non-delivered metal, as a more flexible instrument to manage a “gold” account, become more numerous,” Mr. Vladimir Pishchany, head of banking metals department of VAB Bank, comments. 

According to Mr. Pishchany, after a series of historical maximums reached by gold prices within a short distance expectation of a strong downward trend would be only too reasonable.  “I believe, the “point of psychosis” was crossed after the situation in the US had settled.  The price of the yellow metal is likely to float within USВ 1600–1800 a troy ounce until the year end.  Much will depend on international economy factors, as well as further steps to overcome debt problems in Europe and the US,” the expert says.