As the Euro debt crisis intensifies in unmanageable proportions, apprehensive private investors were triggered a new frenzied demand for the precious gold metal. The unrelenting and presumably enduring crisis resulted in a renewed need for gold as a form of fail safe investment should the Euro economy will ultimately fail in its seemingly unproductive measures to recover from the ever worsening depression to hit the Eurozone.

In a recent interview from a leading bullion trader, he mentioned that the demand for the precious gold metal has risen remarkably to 50pc since last year and is currently holding more than 30 tons of gold with a net worth more than £1bn on behalf of private traders and investors alike. He further stated that it is the first time it broke free of the £1bn barrier.

The head of research at Bullion Vault mentioned in an interview that although gold might slip out of view for some potential investors the moment prices relieve back as was shown since last summer’s record high private investors are quick to use this grace period to strategically build their gold stocks.

The fast growing number of individuals are cynical with the credit-risk and low return of investments of traditional high street saving products and given these conditions, it’s not much of a surprise that savers are good to continue to hoard the world’s oldest store of wealth. Furthermore, gold has roosted slightly above the $1,600 as prices are being sustained by a persisting anxiety over Spain’s surging credit cost.

Reuters said that the precious metal attracted sporadic safe-haven flow in recent weeks following a tandem movement with a much riskier asset due to last year’s Eurozone crisis that pressed hard on liquidity and shocked financial markets along with it.

In the short term, the price of gold may well remain very volatile after the recession of Spain in the news being one of the hardest hit countries of the region’s crisis. Exceptions however on the monetary policies have shifted to a different gasp of controversy following bad numbers on the US employment market and China’s recent rate cut hopes in further easing that will help gold scale even higher after a near-term instability.