Thanks MiningNews.netGold enjoys good start to the yearAndrea...

Thanks MiningNews.net



Gold enjoys good start to the year

Andrea Hayward


Monday, June 07, 2004
GOLD has glistened in the first quarter of the calendar year with consumer demand jumping year-on-year by 12% in tonnage terms and 30% in dollar terms, according to the World Gold Council.

But tonnage demand was not as strong as the December quarter, 2003, falling 143 tonnes below December's 747t to 604t.

India, Vietnam and Turkey spurred the gold recovery, with demand for jewellery up by 21%, 36% and 38% respectively.

WGC chief executive James Burton said in the face of a 55% rise in the dollar gold price, he would have expected consumer demand to recede due to the sensitivity of Asian and Middle Eastern markets to price volatility.

Burton said early indications for the second calendar quarter were positive.

"It is the World Gold Council's function to play a key role in maintaining momentum and ensuring gold jewellery is a desirable and relevant product for women in our key markets," he said.

The WGC has promoted K-gold in Beijing this quarter and its Italian designed Gold Expressions range in all major markets, hoping to build on the positive first quarter results.

A steady rise was evident in industrial demand – 8% in tonnage terms and 26% in dollar terms – built on improved trends in mid 2002 when gold was increasingly used in new electronic products during the recovery of the electronic industry.

Investment demand was up 14% in tonnage terms – Japan leading the way by leaping 48% – on the back of continued concern over its economy. Vietnam more than doubled its investment demand.

On the supply front, net central bank selling totaled 96t for the quarter, with sales by Switzerland, Norway and the Philippines, partly offset by an acquisition of 28 tonnes by Argentina.

Overall supply was 7% lower than a year ago, after the renewal of the Central Bank Gold Agreement in March.