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

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.