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London gold vaults at record levels in January despite weak gold price performance in 2021

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(Kitco News) - In the last two months, the gold market has seen its worst start to the year in nearly 30 years; however, the latest trade data shows that investors continue to add to their gold holdings with London vaults at record levels for the ninth consecutive month, according to the latest monthly data from the London Bullion Market Association (LBMA)

According to the LBMA's latest clearing stats, London vaults held a record high of 9,602 tonnes of gold as of the end of January. The gold is valued at $575.4 billion.

Meanwhile, London vaults held 34,346 tonnes of silver, valued at $30.3 billion.

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

According to the report, the volume of gold ounces transferred in August fell by 0.7% month-on-month to 18.8 million ounces.

The value transferred was relatively unchanged at $35.1 billion. There were 4,669 transfers in January, up 6.8% from December, with the clearers settling on average 4,026 ounces per transfer, 7% lower m/m.

Meanwhile, the number of silver ounces transferred in January declined in line with gold, falling by 2.8% to 258.6 million ounces, the LBMA said.

The value of the transfer increased by 1.1% to $6.7 billion. There were 1,898, down 4% from December, with the clearers settling, on average, 136,197 ounces per transfer.

The average gold/silver price ratio continued to decline in January as silver outperformed the yellow metal. The LBMA said that the average gold/silver ratio was 72.1, down from the December average ratio of 74.6.

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