Wednesday February 14, 10:11 am Eastern Time
Press Release
Gold Demand Up 11% in Q4 2000 to New Quarterly Record
Year-on-year Demand Steady
NEW YORK--(BUSINESS WIRE)--Feb. 14, 2001--Gold demand in the world's leading gold-consuming countries was 11% higher in the fourth quarter of 2000 than a year earlier, according to figures published by the World Gold Council today.
At 894 tonnes, this set a new quarterly record for the world's 27 major markets, topping the previous record, in Q3'99, by 2%. The strong growth in Q4 offset a weaker performance in the first three quarters so that demand for the year as a whole, at 3,281 tonnes, was essentially unchanged from 1999.
Jewellery consumption for Q4 reached 793 tonnes, 12% higher than a year earlier and 5% higher than the previous record in Q3'99. Annual consumption of jewellery was also a record at 2,902 tonnes, 4% higher than the previous record in 1999.
In contrast to jewellery, investment demand throughout 2000 was subdued, falling 21% from the 1999 level. In 1999 investment demand was exceptionally high, particularly in the US, due to fears of widespread Y2K disruption. When the disruption failed to materialise demand fell sharply in 2000, a fall exacerbated by some of the gold acquired being sold back to the market. However, by Q4 there were signs that investment was shaking off the effects of the fallout, with demand higher, by 4%, than a year earlier for the first time in the year.
Demand reached new records in several countries. In India, the world's largest market, demand edged above the previous record in 1999, despite an abnormally low number of auspicious days in the Hindu calendar for weddings and a patchy monsoon hitting rural incomes in some areas. In Turkey demand rose a massive 49% over 1999 enabling the country to regain its place among the world's top five consumers. Records were also set in the Gulf States, Mexico and Vietnam. Also of note is the 10th successive annual record for gold jewellery consumption in the United States.
Haruko Fukuda, Chief Executive Officer, World Gold Council, commented:
``I am encouraged by the all-time record achieved in the fourth quarter. Despite the effect of Y2K fallout on investment demand, which depressed the figures for 2000 as a whole, the trend in consumption has been strongly upwards in the last few months. We are determined to build on this performance and I look forward to seeing good progress in 2001.''
Gold Demand Trends No. 34 is available from the day of publication on the Council's website (www.gold.org). Hard copies of the GDT document can be obtained from the World Gold Council, 444 Madison Ave., New York, NY 10022. (Tel: 212-317-3800 Fax: 212-688-0410) or a PDF file can be downloaded from the website or obtained by e-mail from george.milling_Stanley@wgcny.gold.org.
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Contact:
World Gold Council, New York
George Milling-Stanley, 212/317-3848
Fax: 212/688-0410
george.milling_stanley@wgcny.gold.org
or
Marston Webb Int'l, New York
Victor Webb, 212/684-6601
Fax: 212/725-4709
marwebint@cs.com
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