During May 2012 the price of gold dropped over 6% and investors withdrew over €1 billion from gold ETPs.

Many managers and strategists say they cannot understand why investors buy gold. Yet the price has risen steadily, and shows little sign of softening. Switzerland and Germany are the top European centres for ‘investment’ gold demand – even through the bear market in gold some years ago, demand in Germany was more resilient than in other markets, and the asset has always been easier to access.