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Investors holding record levels of gold for fifth consecutive month - LBMA

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(Kitco News) - Gold maybe be caught in a tightening consolidation pattern around $1,900 an ounce, but according to the latest trade data from the London Bullion Market Association (LBMA), investors continue to see value in precious metals.

For the fifth consecutive month, a record amount of gold was held in London vaults in September, the LBMA said in its monthly clearing statistics report. As of the end of September, there were a record 9,069 tonnes of gold held in London, valued at $550.2 billion. Meanwhile, UK vaults held 33,508 tonnes of silver, valued at $25.6 billion.

Although gold investors continue to increase their holding in gold and silver, trading activity actually slowed in September.

According to the report, the volume of gold ounces transferred in August fell by 14.8% month-on-month to 18.8 million ounces.

The value transferred fell nearly 17% to $36.2 billion. There were 4,670 transfers in September, an 8% monthly drop, with the clearers settling on average 4,032 ounces per transfer, 7.4% lower m/m.

Meanwhile, the number of silver ounces transferred in September declined in line with gold, falling by 14.9% to 288.9 million ounces, the LBMA said.

The value transferred fell by 18.1% to $7.48 billion. There were 2,269, down 26.5%, with the clearers settling, on average, 127,318 ounces per transfer.

The average gold / silver price ratio, which had fallen for four consecutive months to August, climbed back slightly in September to 74.3 (compared to 73.2 in August).

In September, the average gold/silver price ratio ended its fourth-month decline, ticking higher to 74.3 points, up from August's average of 73.2.

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