BullionVault’s Gauge of Client Buying at Highest Since November

March 4 (Bloomberg) -- BullionVault, an online service for investors to buy and sell physical gold and silver, said its Gold Investor Index climbed to a three-month high in February as prices posted the first back-to-back monthly gain since August.

The gauge rose to 53.5 last month, the highest since November, from an 18-month low of 51.9 in January, the London-based company said in an e-mailed report today. A reading above 50 indicates more buyers than sellers. The 3.1 percent increase in the index was the biggest since April.

After slumping the most since 1981 last year as some investors lost faith in the metal as a store of value, gold rebounded 11 percent since the end of December as signs of slowing economic growth increased demand. Bullion reached a four-month high yesterday amid escalating political tension between Russia and Ukraine.

“Larger allocations are returning to gold after the 2013 crash,” Adrian Ash, head of research at BullionVault, said in the report. “Today’s geopolitical threats only add to the case for holding financial insurance. This weekend saw the busiest Sunday on BullionVault’s live markets since the Syrian crisis last summer.”

Gold for immediate delivery traded at $1,340.41 an ounce by 8:35 a.m. in London. It rose 6.6 percent in February, and reached $1,354.87 yesterday, the highest since Oct. 30. Prices slid 28 percent last year.

The company’s customers own about $1.4 billion of gold and the metal is held in vaults in London, Singapore, New York, Toronto and Zurich.

To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net

To contact the editor responsible for this story: John Deane at jdeane3@bloomberg.net