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LBMA: Volume Of Gold Transferred Climbs To 12-Year High In May

By Kitco News
Friday June 28, 2013 9:24 AM

(Kitco News) -The amount of gold transferred between accounts of London Bullion Market Association members rose sharply in May while the amount of silver transfers declined, the organization reported Friday.

The LBMA releases clearing statistics each month showing the net volume of gold and silver transferred between accounts of members, which essentially provide a snapshot of the trading activity.

Total gold transfers rose by 17.2% to a daily average of 28.2 million ounces, the most in 12 years. Despite continued offloading of gold by exchange-traded funds in the Western economies, strong physical demand for gold on falling prices -- particularly from India and China -- led to a significant increase in demand, the LBMA said, The value of gold ounces transferred increased by 11.2% to a daily average of $39.8 billion, the highest level since August 2011.

The number of transfers fell by 5.7% to an average of 5,088 after being at a record high in April. Deals tended to be larger, averaging 5,539 ounces.

Meanwhile, the number of silver ounces transferred fell by 13.7% to a daily average of 142.6 million. However, the pullback was from a 16-month high in April, with the May volume still around 6 million ounces above the monthly average over the last 18 months.

The reduced volume and price decline pushed the value of silver traded down 21% to a daily average of $3.28 billion, the lowest level since last October. The number of transfers rose marginally to an average of 1,027, the highest level in two years.

Year-on-year, the 28.2 million ounces of gold transferred daily in May was well up from 19.5 million in the same month a year ago. The silver daily average of 142.6 million last month was up from 135.3 million a year ago.

By Allen Sykora; asykora@kitco.com

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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