Strong Growth in Several Markets
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NEW YORK--(BUSINESS WIRE)--Feb. 17, 2000--The World Gold Council said today
that gold demand in 1999 has risen by more than a fifth to reach a new record level. Strong
growth in demand in India, Pakistan and the United States helped to power consumption to
a new high. In the 27 markets monitored by the Council, demand rose 566.2 tonnes to 3,278.4 tonnes, 21%
above the total
for 1998 and 224.8 tonnes above the previous record of 3,053.6 tonnes set in 1997 -- a gain of 7%.
The 1999 record came in spite of a slowdown at the beginning of the fourth quarter when demand fell sharply as a
result of the
sudden volatility in the price of gold. However, demand recovered strongly as the period progressed so that fourth
quarter
demand totalled 806.0 tonnes, just 0.7 tonnes below the figure of 806.7 tonnes achieved in the fourth quarter of
1998.
An increase in both jewellery and investment contributed to the year's record results. Jewellery demand in the
fourth quarter
totaled 707.8 tonnes, 5% above the total for the same period last year. That brought full year 1999 jewellery
demand to
2,799.2 tonnes -- a formidable gain of 23% over 1998. Meanwhile investment demand for the fourth quarter 1999
was 98.2
tonnes, down 24% from the fourth quarter 1998. However, investment demand for the full year 1999 totaled
479.2 tonnes, an
increase of 8% over 1998.
These are the main findings of the latest issue of the World Gold Council's quarterly survey, Gold Demand Trends,
published
today.
In reviewing a year of record demand, Miss Haruko Fukuda, Chief Executive Officer, World Gold Council, said
that the results
were the more remarkable in that they were achieved despite a volatile and highly eventful year for the gold market.
She noted
that consumers in many parts of the world held back from buying at the beginning of Q4 because of the sharp
movements in the
gold price following the signing of the Washington Agreement on Gold, which restricted sales out of the official
reserves of
some of the world's largest gold holding countries for the next five years. ``Happily, gold demand recovered as the
quarter
progressed providing support for the view that it was the sudden increase in day-to-day volatility in the gold price
that deterred
consumers rather than the absolute levels. It is especially pleasing to note, too, the continuing gains in the demand
for gold as an
investment,' she said.
Miss Fukuda observed that at the height of the Asian economic and currency crisis a year ago, only 9 of the 27
markets
covered by the WGC recorded annual gold demand exceeding 100 tonnes. ``That number rose to 12 in 1999 as a
result of
strong recoveries in Indonesia, South Korea and Taiwan,' said Miss Fukuda.
Full year records were set by the following:
-- India, the world's largest consumer, with a gain of 3%.
-- The U.S., the second largest market in the world, up 7% year on
year.
-- The Gulf States, which registered a fractional increase over
1998.
-- Indonesia, which was a net dishoarder in 1998.
-- Egypt, up 19%, helped by strong economic growth.
-- Pakistan, which shrugged off political problems to register a
gain of 24%.
Several smaller markets also achieved record full-year gold demand. These included Mexico, up 27% over 1998
to 69.6
tonnes; France, edging up 1% to 60 tonnes; and Vietnam, rising 20% to 53.0 tonnes.
The World Gold Council is an international organisation formed and funded by leading gold mining companies from
around the
world to monitor and analyse developments in the gold market and to encourage demand for gold.
Gold Demand Trends No. 30 is available from the day of publication on the sCouncil's website (www.gold.org).
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