Hutch
Once again you demonstrate selectivity in your presentation of WGC data. The demand has stabilized to "normal" levels considering the one-off sales of South Korean Gold in the first quarter (225 tonnes).
Here is the WGC summary for the record.
Demand in the twenty-five key markets for gold consumption
monitored by the World Gold Council totaled 1,712.2 tonnes (1) in
the first three quarters of 1998. The performance for the year to date
represented a decline of 20% from the same stage of last year, but this should not be allowed to mask the fact that there has been a steady improvement in gold consumption statistics as the year progressed. At the close of the first quarter, when the worst impact of the Asian economic and currency crisis was felt, gold consumption was running 46% behind the 1997 level. After the first half, consumption was still 29% below the same stage of last year. Demand in the third quarter was just 1% behind that for the same period of 1997, when the first effects of the Asian crisis were starting to become
apparent.
The recent performance of the ten largest consumer markets, each of which accounted for more than 100 tonnes of gold demand in 1997, is shown in the chart above. The most significant changes in Q3 demand were:
Demand in India was 171.8 tonnes, 8% below the record level of
Q3'97, reflecting the economic uncertainty and the decrease in
consumers' disposable income following the surge in the prices of
necessities.
In the USA, demand rose 19% to 113.5 tonnes, helped by near-record
coin sales.
In China, demand fell 12% to 43.1 tonnes in response to the
devastating floods in the Yangtze basin and several adverse
socio-economic developments.
Rising investment lifted total demand in Saudi Arabia to 49.1 tonnes,
29% above Q3'97.
Demand in Japan rose 31% to 21.0 tonnes following a surge in investment towards the end of the period.
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