Buyers rush for gold after worst quarterly fall in 35 years

November has seen a hefty increase in gold sales with buyers outnumbering sellers two to one, according to BullionVault.

The gold and silver exchange used its investor index to show that buyers had taken advantage of the falling gold price to grow their holdings. The index is sentiment indicator of the 50,000 people who use service online.

November rounded off the strongest three-month run of the BullionVault index, following the sharpest quarterly drop in the dollar price of gold since 1983.

Gold purchases remain strong among those concerned over the impacts of quantitative easing (QE) and how soon the Federal Reserve will raise interest rates

Speaking to CNBC, Adrian Ash of BullionVault said:

Our client base has continued to increase so there continues to be, and I think that's because of the lessons of the last five years, gold as an insurance policy; gold as something for private investors to look at as being a hedge.

India and China have proved particularly strong growth markets for the precious metal. However growing Chinese demand has failed to outweigh the impact of western investors leaving gold as the economic recovery takes hold.

Yesterday gold fell to its lowest price since July and has fallen 36 per cent since its record high of $1,909 in 2011. UBS cut its 2014 forecast for gold to $1,200/oz, from $1,325, while Bank of America Merrill Lynch say the upside remains limited.