Cyprus ‘Electrified’ Gold Buying in Weak March

Kerem Uzel | Bloomberg | Getty Images

The percentage of retail investors in gold slowed for the third month in a row in March, despite a late flurry of interest in the precious metal following the shock of the Cyprus crisis, a survey released on Tuesday showed.

BullionVault's Gold Investor Index, which takes the balance of net buyers versus net sellers per calendar month, dropped from 54.4 in February to 53.3 in March. This was a third monthly decline since a 12-month high of 58.3 in December.

Still,a reading above 50 means there are more buyers than sellers, and events in Cyprus definitely heightened interest in gold during March.

According to BullionVault, the busiest weekend for gold dealing since mid-October 2012 took place during the first Cyprus bail-out deal. The following day, Monday 18 March, was the strongest day for first-time gold depositors since January 2012.

(Read More: Why a Gold Spike Is Coming)

During the week of the crisis and the on-going efforts to reach a bail-out deal, gold trading volume on BullionVault rose by 78 per cent compared to the 2013 weekly average. BullionVault tracks 45,000 investors from 159 countries.

Responding to March's data, Miguel Perez-Santalla, vice president of BullionVault, said, "This tells us that the general public is not buying into the U.S. recovery yet, even in the face of a stronger U.S. dollar and U.S.stock market."